An Overview of Arbitrum and zkSync Era Network’s Growth in TVL

According to reports, according to L2BEAT data, the TVL of the Arbitrum network reached $5.81 billion (with its native Token ARB accounting for 27.59%), an increase of 49.91% in the past week. The TVL of the zkSync Era network reached $33.89 million, with a weekly increase of 46912.7%. The overall TVL of the Layer 2 network reached $8.76 billion, with a weekly increase of 25.74%.

Data: zkSync Era has gained 46912.7% in the past week

The world of cryptocurrency has seen a significant growth in the total value locked (TVL) of layer two (L2) solutions, with Arbitrum and zkSync Era networks leading the way. According to L2BEAT data, the TVL of the Arbitrum network reached $5.81 billion, marking a staggering 49.91% increase in the past week. Not far behind is zkSync Era network, which saw a weekly increase of 46912.7% in its TVL, reaching $33.89 million. In this article, we will provide an overview of the two networks and their impressive growth in TVL.

Overview of Arbitrum Network

Arbitrum is a layer two scaling solution built on Ethereum, designed to help reduce gas fees that can surge during high network congestion.
By utilizing the Optimistic Rollups technology, Arbitrum ensures fast and cheap transactions on the Ethereum network. Transactions on the Arbitrum network get validated off-chain, and once a group of transactions is done, the network sends the new state to the Ethereum chain as a single transaction. As a result, users can reap the benefits of low fees and fast transaction times without having to compromise security.

Overview of zkSync Era Network

The zkSync Era network is an L2 scaling solution that utilizes zero-knowledge proofs to help improve scalability on the Ethereum network. It uses zk-rollups technology that enables users to bundle, validate and submit multiple transactions in a single roll-up.
zkSync Era network offers fast and cheap transactions while retaining the high level of security provided by the Ethereum network. Its use of zero-knowledge proofs offers users a high level of privacy, which is a key selling point of the network.

L2 Network’s Growth in TVL

The TVL of L2 solutions has seen a significant growth in the past week, with Arbitrum and zkSync Era networks leading the way. At present, the overall TVL of the L2 network has reached $8.76 billion, marking a significant 25.74% growth within a week.
Arbitrum’s impressive growth can be attributed to the network’s ability to cater to high demand. Its user-friendly interface makes it accessible to both developers and end-users looking for fast and convenient transactions. Additionally, its integration with various DeFi protocols such as Uniswap, Aave, and SushiSwap has helped increase its popularity in the cryptocurrency space.
Meanwhile, zkSync Era network’s rapid growth is a testament to the network’s ability to offer privacy-focused transactions with high scalability. Its use of zero-knowledge proofs has garnered attention from privacy advocates who value their data security.

Conclusion

The growth of Arbitrum and zkSync Era network’s TVL in the past week highlights the significant role that L2 solutions play in reducing the high fees and slow transaction times experienced on the Ethereum network. Both networks offer innovative solutions to these problems while ensuring the security and privacy of their users.
As the cryptocurrency space continues to evolve, it is likely that we will see more L2 solutions emerge on the market. It will be interesting to see how they will impact the current crypto landscape and whether they will offer new ways of conducting transactions with added security and privacy.

FAQs

Q1. What is TVL?
A1. TVL stands for Total Value Locked and is a measure of the amount of cryptocurrency locked into smart contracts on a blockchain.
Q2. How does Arbitrum compare to other L2 solutions?
A2. Arbitrum has been gaining popularity among developers and end-users due to its user-friendly interface and integration with various DeFi protocols.
Q3. What is the Zero-Knowledge proof in zkSync Era network?
A3. Zero-Knowledge proof is a cryptographic protocol used to verify the authenticity of information without revealing any additional information. In the context of zkSync Era network, it is used to offer privacy-focused transactions to users.