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- Last week, nearly 60% of all transactions created on Arbitrum were linked to Inscriptions.
- Users had to pay much less for the inscriptions.
Layer 2 (L2) blockchain Arbitrum (ARB) has seen a sharp increase in network activity over the past few days.
Daily trading of scaling solutions hit a new all-time high (ATH) on December 16, according to on-chain analytics firm IntoTheBlock.
Source: IntoTheBlock
Inscription Powers Arbitrum’s On-Chain Traffic
According to the Dune dashboard scanned by AMBCrypto, EVM Inscriptions, which are similar in concept to Bitcoin Ordinals, have led to a surge in on-chain traffic.
Last week, nearly 60% of all transactions created on Arbitrum were linked to Arbitrum activity. This is higher than zkSync Era, another popular L2, where Inscriptions accounted for 57% of total transaction activity.
Additionally, more than 16% of all gas fees on Arbitrum last week were spent on issuing and trading inscriptions.
The EVM Chain, inspired by Bitcoin’s BRC-20, set out to create a token standard for recording information on the blockchain, such as non-fungible tokens (NFTs). One of the advantages of Inscription is that moving costs are low.
As of December 18, more than 1.2 million inscriptions had been created in Arbitrum. However, users had to pay a much smaller fee (about $551,640) for transactions involving Inscriptions.
judgment test
But the madness brought its own problems. On a day when there was a surge in transactions, the network experienced a brief outage. As AMBCrypto reported, the incident marked the first downtime for the network in the past 90 days.
However, Arbitrum quickly resolved the issue and the network was back up and running in less than two hours after the outage began. Nonetheless, the incident raised some questions about the load-bearing capacity of the Arbitrum.
ARB’s recession continues
Contrary to Arbitrum’s Inscriptions mania, its native token ARB is down 3.39% for the week, according to CoinMarketCap.
Realistic or not, ARB’s market cap in BTC is:
Well, this may be because the asset does not derive any value from Arbitrum’s on-chain activities and functions as a governance token.
Overall, the token is 90% complete compared to when AirDrop was hyped.