Data Decoded: Layer 2s (Arbitrum and Optimism)

Dashboard Insights

• Optimism and Arbitrum are both showing over 95% cost savings on an average transaction vs. Ethereum. Since the Nitro upgrade for Arbitrum, their average fees when compared to both Ethereum and Optimism have plummeted.
• Arbitrum is currently generating much higher revenue from transaction fees than Optimism despite their fees on average being lower. The primary source of revenue for Optimism comes through their scalar fee, which has been turned off since March.
• Layer 2s as a whole are currently using 2.75% of all Etherum gas, with Optimism and Arbitrum combining for 2% of total gas expenditures.
• Both Arbitrum and Optimism have an eight-week retention rate of around 25%, although there is high variance week to week. This number is considered excellent for Web 2 companies.
• Optimism and Arbitrum have both seen positive bridge flows over the past 180 days, with Optimism seeing $700M in net inflows and Arbitrum only seeing $150M.

Our newest Dune Dashboard tracks KPIs related to Layer 2s, specifically Optimism and Arbitrum as they are the only two with data available on Dune and are the two with the largest adoption to-date. This document should serve as a compliment to the dashboard to explain the metrics being shown and to provide analysis based on what the data is telling us.