The number of transactions on the top Layer 2 networks—Arbitrum, Base, and Optimism—has quadrupled this year, according to IntoTheBlock, a platform providing smart access to decentralized finance (DeFi) and market intelligence tools.
The increase in transactional volumes was relatively modest in the first quarter but accelerated notably in the second quarter following the integration of EIP-4844 in March. This upgrade was designed to reduce transaction fees by over 90%, making it easier for people to use these Layer 2 networks with lower transaction costs.
Arbitrum, Base, and Optimism are Layer Two scaling solutions based on the Ethereum blockchain, introducing an additional layer to enhance the functionality of Ethereum and facilitating faster and less costly transaction execution.
The reduction in fees has had a positive impact on the usage of these networks, making DeFi more accessible to a wider range of users. The increase in the number of transactions is beneficial for the DeFi ecosystem, indicating a growing desire to utilize these financial tools and services. As these Layer 2 networks become more mainstream, they are likely to contribute to the continued expansion of DeFi.
The integration of EIP-4844 in March, which reduced transaction fees by more than 90%, has played a significant role in the growth of Layer 2 networks this year, allowing individuals to engage with DeFi services more cost-effectively.