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Arbitrum Layer 2 Network Leads the Trend: Technical Upgrades, Ecological Prosperity, and Future Outlook
Analyzing February Hotspots: Arbitrum's Technology, Ecology, and Future Development
Summary
At the end of January, a small bull market emerged in the cryptocurrency market, with Bitcoin breaking through $23,700 to reach a six-month high. Arbitrum, as a representative of the Ethereum Layer 2 network, has injected new vitality into the market. This article will focus on the development of Arbitrum, analyze its technological upgrades, ecological construction, and popular projects, and explore its future development direction.
Overview
In early 2023, Layer 2 performed outstandingly, meeting industry expectations. As the largest Layer 2 scaling solution for Ethereum by TVL, Arbitrum accounts for 3.01% of the total TVL across all networks and 49.51% within L2. Arbitrum compresses off-chain transactions to upload to the Ethereum mainnet, solving congestion issues and providing a fast, low-cost, and secure trading experience.
Chapter One Technical Upgrades
2022 Arbitrum multiple technology upgrades:
Arbitrum Nova: Based on AnyTrust technology, aimed at applications such as gaming and social interaction, eliminating the 7-day withdrawal period.
Nitro: Improve network speed, reduce transaction costs, replace AVM with WebAssembly architecture, and use Geth instead of EVM simulator.
Stylus: A new generation programming environment that supports application development in languages such as Rust and C, enhancing speed and reducing costs.
Chapter 2 Ecological Cooperation
The market share of Arbitrum has grown significantly, due to:
The Odyssey event held in June 2022 lasted only a week, but attracted a lot of attention, with 207,000 new addresses. After the event, Arbitrum continued its technical upgrades and launched innovative projects, resulting in a sustained increase in user activity.
Chapter Three Popular Project Analysis
3.1 DeFi Category
GMX: A decentralized perpetual contract exchange with a TVL of $543 million, accounting for 31.46% of the total TVL in Arbitrum DeFi.
Camelot: Arbitrum native DEX, integrating features such as Launchpad and customizable fees.
RDNT: Cross-chain lending protocol, TVL exceeds Aave V3 Arbitrum version.
3.2 Game Category
Treasure DAO: Building a "decentralized Nintendo", consisting of multiple on-chain games.
Trident DAO: Proposes the "Risk To Earn" model, and its Token PSI has attracted considerable attention.
Chapter Four Future Development
Arbitrum will focus on three aspects in the future:
Technical upgrades: decentralized sorter, permissionless proof verification, etc.
Ecological Support: Expanding applications in new areas such as social networking and NFTs.
Economic Model: Launch tokens, improve distribution, airdrop, and governance plans.
Arbitrum is expected to continue its explosion in 2023, strengthening DeFi and gaming projects, launching native social and NFT projects, issuing tokens to reward users, and truly enabling the Nova chain.