zkSync, Arbitrum show progress leaving Optimism and Polygon behind
– zkSync showed a promise of growth as gas fees generated by the protocol increased.
-Arbitrum remained the dominant protocol despite the low activity on the network.
New entrants like zkSync and Starknet are adding to the already crowded Layer 2 space as they compete to emerge as leaders in the sector.
The growing number of participants in the Layer 2 space is resulting in increased competition. Now, this may have both positive and negative effects on the development of L2 scaling solutions.
Stepping on the “Gas”
It is here to be noted that zkSync has emerged as the frontrunner in Ethereum gas consumption, with a market share of 32%. Thus, surpassing Arbitrum and Optimism, which captured 26% and 24% of the market share, respectively.
zkSync’s achievement in securing the majority of Ethereum gas consumption is a promising indicator of its user adoption and success.
In terms of fees generated, Arbitrum dominated amongst L2 protocols, with the token terminal’s data indicating that it accounted for 41% of all L2 fees.
On the other hand, Polygon, and Optimism constituted 23% and 22% of the fees generated, respectively.
Arbitrum’s leadership in overall fee generation suggests that it achieved considerable market traction over the last few weeks.
However, for Polygon and Optimism to remain competitive, they must focus on providing competitive fee structures and improving their platform features to attract and retain users.
Reportedly, the increasing number of daily active addresses on the Arbitrum network is one of the reasons behind its high fee generation, as per data from Artemis.
The current state of the L2 protocols is subject to change as they are all set to undergo significant updates soon.
This update will convert the L2s into a settlement layer, enabling the deployment of L3s. The resulting improvements in compatibility, value capture, and developer experience will likely enhance the performance of these networks and change the competitive landscape of the layer 2 space.
While the majority of #Ethereum scaling projects have yet to publish their full implementation details, the bulk of them, including @Arbitrum, @zkSync, and @Starknet, intend to extract value by using their general-purpose L2s as a settlement layer upon which L3s can be deployed. pic.twitter.com/JOCKJWkmLq
— Messari (@MessariCrypto) April 17, 2023