The cryptocurrency market has skyrocketed this new year, with the price of bitcoin exceeding $45,000 for the first time since April 2022 amid investor anticipation of a possible approval of a spot bitcoin exchange-traded fund in the United States.
Meanwhile, tokens for two major Layer 2 scaling solutions: Decision BRA
+3.30%
and Optimism
OP
-7.01%
โ have witnessed price rallies over the past month, with both trading near their all-time highs.
The Arbitrum token gained 13% today, hitting a record high of $1.83, representing a 60% price increase over the past month. It is currently changing hands at $1.78 with a market cap of $2.3 billion, according to The block pricing page.
OP token, the native token of OP Mainnet (previously known as Optimism), reached its record price of $4.10 last Wednesday. Since then, the token has been trading around the peak, with $4.05 levels seen today during Asian trading hours. As of 8:50 am ET, OP token is trading at $3.87. according to The Block.
Layer 2 tokens
Optimism and Arbitrum, the two leading Layer 2 solutions by adoption, use Optimistic roll-up technologies. They allow users to process transactions outside of the main Ethereum blockchain, presenting a more cost-effective method. ARB and OP tokens are essential to governing these networks.
Over the past three months, both networks have seen an increase in transaction volume. As of Q4 2023, Arbitrum's daily transactions increased from 670,000 to 926,000, an increase of 38%, according to The Block. data. In the same period, OP Mainnet saw its daily transactions grow by 20%, from 354,000 to 431,000.
The total value locked in Arbitrum remains the highest among all Layer 2 solutions at $2.57 billion. TVL's second-largest Optimistic rollup, OP's mainnet, has more than $937 million in assets.
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