Ethereum Layer 2 Showdown

Optimism network has surpassed Arbitrum in transaction volume for the first time in six months, as reported by blockchain analytics platform Artemis on July 27. 

Both Optimism and Arbitrum are Ethereum layer 2 networks that utilize optimistic roll-up technology to bundle and compress transactions before sending them to the Ethereum blockchain, potentially reducing transaction fees.

The recent surge in Optimism's transaction volume can be largely attributed to the launch of Worldcoin ($WLD), a cryptocurrency AI startup established by Sam Altman of OpenAI. The launch resulted in over 250,000 holders through an airdrop, adding considerable activity to the Optimism blockchain.

Velodrome, a decentralized exchange (DEX) that launched its second version on Optimism on June 23, has also contributed to the network's increased activity. DefiLlama reports a 39% rise in Total Value Locked (TVL) on Velodrome, amounting to $258 million in the last month.

Moreover, the upcoming launch of Coinbase's Base network, which is expected to be connected to Optimism as part of an upcoming "Superchain," could further boost Optimism's activity.

Optimism had been trailing behind Arbitrum in transaction volume since the end of January. As Artemis data shows, both networks had similar volumes of transactions from August to December 2022. 

Last December, Optimism had pulled ahead of Arbitrum, but the positions reversed in January after the launch of Optimism's "quest" feature, which rewards users for on-chain activities. In March, Arbitrum also experienced a significant increase in volume with the launch of its native token, Arbitrum ($ARB), which became available to users.

However, Arbitrum maintains a lead in terms of daily active addresses, with 154.47k compared to Optimism's 113.85k. 

In addition, leading in transaction volume, Optimism trails significantly behind Arbitrum in terms of capital held in its contracts, also known as Total Value Locked (TVL).  According to DefiLlama, Optimism currently holds $1.274 billion TVL, while Arbitrum commands over $2.098 billion TVL.