New York, NY – The Layer 2 sector in the cryptocurrency market has witnessed a surge in competition following the Dencun upgrade. Two networks, Starknet and Arbitrum, have emerged as key players, showcasing strong performance in user fees, second only to zkSync Era.
Both Starknet and Arbitrum have stood out for their low gas fees charged per user, indicating high efficiency in transaction processing. Despite the similar fee structure on both networks, a noticeable difference in user activity has been observed.
Arbitrum has successfully attracted a large number of addresses on the network, surpassing 1 million daily active addresses and exceeding 3 million daily transactions. In comparison, Starknet has shown growth but fell short of Arbitrum’s numbers, pointing to the need for increased user adoption to compete effectively in the L2 space.
The performance of Starknet and Arbitrum in the DeFi sector reflects a stable Total Value Locked (TVL) for both networks, but fluctuations in decentralized exchange (DEX) volumes. The price movements of both tokens, STRK and ARB, have been under scrutiny, with ARB trading at $0.8017 and STRK at $0.708 at press time.
While ARB experienced a recent price spike, the overall trend remains bearish, as indicated by the Relative Strength Index (RSI) of 42.27. On the other hand, STRK’s RSI of 35 and CMF of -0.10 signal a bearish outlook, highlighting the challenges faced by both tokens in the current market conditions.
The analysis of price movements, user fees, and network activity of Starknet and Arbitrum points towards a competitive landscape within the Layer 2 sector of the cryptocurrency market. As the industry continues to evolve, attracting more users and enhancing protocol performance will be crucial for sustainable growth and success in the rapidly changing landscape of decentralized finance.