We all see transactions increase, values ​​decrease – so why?

Decision ( $ARB ) and Optimism ( $OP ), two scalability Layer 2 Ethereum solutions, have seen trading activity and financial performance change dramatically this year in the ever-changing cryptocurrency industry. While transaction activity has increased in the ecosystems of both networks, their Total Value Locked (TVL) and native token values ​​have decreased.

According to IntoTheBlock, in the last year, consumption of Arbitrum and Optimism has doubled. The second quarter following EIP 4844 implementation saw particularly strong increases. This proposal reduces costs and increases processing capacity by using a more efficient transaction type to increase Ethereum's capacity.

Arbitrum transactions increased from 1 million to 2.6 million on June 26, a record. The number of transactions on Optimism has increased from 800,000 in April to 409,000 currently. Arbitrum has more than 1.5 million transactions, exceeding optimism levels although its performance has been highly variable.

TVL, which measures the total amount invested in the financial system of these platforms, gives a clear picture of their financial capacity. According to DeFiLlama, Arbitrum and Optimist saw TVL increase earlier this year.

In March, Arbitrum had $3.1 billion in TVL and Optimism $1 billion. This is when people started using these websites and investing more. Arbitrum and Optimism's TVL fell to $2.7 billion and $665 million, respectively, changing this pattern.

There are various legitimate reasons for the decrease in the value of TVL and ARB/OP tokens. Such influences may include investor sentiment towards cryptocurrencies or market circumstances affecting all cryptocurrencies. These patterns can also be affected by Layer 2 network modifications.

ARB and OP price trends could have been better. Market research shows both currencies losing value, with OP unable to break the $2.20 barrier. About 1.7 USD is the current price. ARB has set resistance at $1, currently $0.07.