How Does ARB Compare to Its Competitors in the Layer 2 Market?

ARB outperforms competitors with lower gas fees and easier usability

Arbitrum has established itself as a standout performer in the Layer 2 scaling solutions market through its combination of cost efficiency and user-friendly design. Transaction data reveals Arbitrum's significant advantage in gas fees compared to the ETHereum mainnet:

This represents approximately a 95% reduction in transaction costs when using Arbitrum compared to Ethereum Layer 1, making it particularly attractive for frequent traders and DeFi users. The platform's efficiency extends beyond mere cost savings, as Arbitrum consistently delivers faster transaction processing times.

Arbitrum maintains its leading position in the L2 ecosystem with superior stablecoin supply ($5 billion compared to Base's $3.7 billion) and enhanced ecosystem composability. Users report a more seamless experience when bridging assets to Arbitrum, with straightforward onboarding processes and extensive wallet compatibility.

The platform's governance token, ARB, further strengthens the ecosystem by allowing community members to participate in decision-making processes. Though facing competition from other L2 solutions, Arbitrum's combination of security, efficiency, and accessibility continues to attract developers and users seeking optimal blockchain performance without prohibitive costs.

Arbitrum's ecosystem shows superior growth compared to rivals

Arbitrum has established itself as the leading Layer 2 solution in the Ethereum ecosystem by 2025, demonstrating remarkable growth metrics that outpace competing networks. With a Total Value Locked (TVL) of approximately $19.21 billion as of September 2025, Arbitrum commands the largest market share among Ethereum L2s, highlighting its dominance in attracting liquidity.

The platform's user activity shows exceptional strength with nearly 470,000 active addresses and approximately 3.4 million daily transactions. This robust engagement reflects Arbitrum's growing appeal among both developers and users.

A comparative analysis reveals Arbitrum's market leadership:

Arbitrum's ecosystem expansion is further evidenced by significant developer activity and new dApp launches, including Robinhood's EU stock trading platform and Studio Chain's gaming platform. The network processed over 2 billion transactions by mid-2025, demonstrating its scalability advantages.

The ArbitrumDAO's $40 million DeFi Renaissance Incentive Program launched in early 2025 has accelerated ecosystem growth by attracting innovative protocols. This strategic approach to ecosystem development has helped maintain Arbitrum's position as the preferred L2 solution for DeFi applications.

ARB's market share increased by 15% in the past quarter

The first quarter of 2025 marked a significant milestone for Arbitrum (ARB) as its market share increased by 15% following the token's listing on Robinhood. This substantial growth came during a period of general market volatility, highlighting ARB's resilience and growing adoption in the crypto ecosystem.

The price action reflects this increased market confidence, as demonstrated in the comparative trading data before and after the announcement:

The market share growth coincided with ARB's expanding presence across multiple chains. Currently, the token operates on both Ethereum and its native Arbitrum network, with contract addresses 0xb50721bcf8d664c30412cfbc6cf7a15145234ad1 (ETH) and 0x912CE59144191C1204E64559FE8253a0e49E6548 (ARBEVM) respectively.

Financial analysts attribute this growth to Arbitrum's technological advantages in providing high-throughput, low-cost smart contracts while maintaining trustless security. The governance token's increased accessibility through major platforms has broadened its investor base significantly. The recent surge occurred despite ARB's overall price experiencing volatility, with the token currently trading at $0.293, down from its all-time high of $4 reached in March 2023. This market share expansion indicates growing institutional confidence in Arbitrum's long-term ecosystem development.

FAQ

Is ARB crypto a good buy?

ARB shows potential as a leading layer-2 solution. With continued ecosystem growth and adoption, it could be a promising investment in the evolving crypto landscape.

What is the ARB coin?

ARB is the native token of Arbitrum, a Layer-2 blockchain designed to scale Ethereum. It provides users with governance and transaction fees on the network.

Can an ARB coin reach $100?

Based on current market trends and analysis, it's unlikely for ARB to reach $100 in the near future. Predictions don't support such a significant price increase for Arbitrum.

Does Arbitrum have a future?

Yes, Arbitrum has a bright future. Its advanced Layer 2 technology, cost-efficiency, and speed position it well for growth. The market shows strong support for its development.