Etherbridge

21/ User dynamics: Post-ARB airdrop, Arbitrum experienced a surge then dip in user count. Contrastingly, after OP's May 2022 airdrop, they've enjoyed a steady increase in user engagement over 3 months.

20/ On Growth: Arbitrum's incentive lure seems to wane, whereas Optimism hints at organic growth in terms of TVL, active users, and fees.

19/ Both ARB and OP aim to amplify Ethereum's economic density. Their transaction counts mirror Ethereum, but forecasts suggest a shift as users gravitate towards L2s for better fees.

17/ Quality: It’s a tight race between ARB & OP. Arbitrum is leading in user and capital attraction, but token incentives may skew this appearance. The real test will come post early-stage incentives.

14/On value: In crypto, determining value isn't straightforward. As nascent assets, L2 tokens sport ambitious multiples, reminiscent of all pioneering tech in the 4th industrial era.

13/Price-wise, post-launch on 23 March 2023, the ARB token has surpassed OP. However, both have seen a decline in recent months. It's early days, and various other roll up tech are set to enter the fray.

12/ First up: Have Layer 2's actually made fees more affordable for users? In short, yes, they have. Yet, EIP-4844 Proto danksharding aims to push these fees even lower.

10/ Token structures for both? Same. They use staking, allow governance, and keep ETH as the payment method for gas fees. This design diverges from many L1 tokens which often handle gas fees differently and might feature a dividend or token burn.

6/ A relatable analogy: Central bank ledgers = underlying blockchain. Commercial bank ledgers & fintech apps = layer 2 solutions. Essentially, L2s batch multiple operations into one transaction on the main blockchain.

Every crypto market cycle introduces a fresh wave of innovation. This cycle? Layer 2 solutions are at the forefront, addressing challenges from previous cycles.

9/15 Bitcoin supply on centralized exchanges has been decreasing since March 2020. This suggests a growing mistrust of bank-like centralised exchange venues. With only 11% (~$69bn) of circulating bitcoin left on exchanges and issuance rate decreasing…

7/15 There is an interesting accumulation and distribution pattern among long-term holders: accumulation peaks align with price lows and distribution troughs with price highs. This cycle seems to echo previous ones.

3/15 We are now in the third 500-day phase of the Bitcoin halving cycle, which in the past has correlated with the beginning phase of a new bull market. Historically, prices reach their lowest between 750 and 1000 days into a halving cycle.