Arbitrum mainnet beta was launched on the Ethereum network on Sep 01 and there’s astonishing progress on that front. As of Sep 21, the Ethereum scaling solution has crossed a Total Value Locked (TVL) figure of $2.6 billion in a short period of three weeks, overtaking it’s Bitcoin based counterpart the Lightning Network by 223X. In comparison against Arbitrum, Lightning Network has a TVL of $114M despite being in operation for several years, at this point.
According to L2 Beat, the website tracking the metrics of all Ethereum based L2 solutions. Arbitrum has seen migration of 796,502 ETH from the Ethereum mainnet, currently worth over $2.64B and up 18%+ in the past week. It commands a total market share of 73.94% amongst Ethereum based L2 solutions. That’s impressive growth and shows that the roll ups based true L2 solutions incite user interest. The Lightning Network data was taken from DeFi Pulse and shows a total of $114M TVL, down over 7% in the past week.
How To Use Ethereum Scaling Arbitrum Bridge To Escape High Fees
Lightning Network usage and TVL was supposed to go up with the recent El Salvador Bitcoin plan implementation, as the LN was likely to play a key role in Bitcoin scaling by allowing economical operation for the average user, who couldn’t afford the Bitcoin base layer fees and processing times otherwise. However, the data indicate otherwise. One likely explanation is that the official Chivo Wallet mandated for usage by the El Salvadorean Govt and one with the highest adoption doesn’t rely on on-chain transactions much and despite being connection to the Lightning Network in some manner, processes most txs in a centralized manner.
About Lightning Network
The Lightning Network (LN) is a layer 2 protocol built on top of the Bitcoin blockchain that seeks to improve scalability and settlement speed, by moving small and frequent transactions off-chain, allowing for fast peer-to-peer transactions with low fees. The protocol relies on micro payment channels restricted by their deposits size, which connect with each other and move liquidity amongst themselves. Only after a channel has been closed is its balance sent to the actual Bitcoin blockchain and updated in the ledger.
Arbitrum One is an Ethereum scaling solution, utilizing the roll-ups solutions to super-scale the world’s largest smart contracts blockchain. It’s directly secured by the Ethereum base layer and doesn’t have its own proprietary token. The EVM compatibility is there and Arbitrum supports Ethereum RPC interfaces too. Arbitrum reduces tx cost and speeds up tx processing time.