After starting the process in 2022 with the first phase, we have reached the final step regarding the migration of The Graph crypto to the Arbitrum network.
The move is expected to improve some aspects of the cryptocurrency’s future such as transaction scalability and lower fees compared to the Ethereum blockchain.
Let’s look at the details of the news together.
Summary
The Graph crypto migrates to Arbitrum to improve scalability
The Graph, one of the leading crypto projects for indexing and querying data on blockchain, recently began its third and final phase of migration to the Arbitrum network.
The network represents a Layer 2 optimistic rollup built on Ethereum with a focus on fast transaction execution and low fees.
The Graph began its process of moving to this network specifically to increase scalability and reduce the cost of participation for its stakeholders.
Cryptocurrency holders voted in a governance proposal to approve the move to Arbitrum.
Tegan Kline, CEO of Edge & Node, one of the development teams behind the data indexing protocol, made the following explicit in a statement released yesterday:
“The Graph users have continually searched for solutions to improve gas efficiencies and enhance other aspects of the network. After careful consideration of all options on the market, the ecosystem selected Arbitrum as the Layer 2 scaling solution that will bring speed and affordability to protocol developers and network participants.”
Users of The Graph’s services will now be able to delegate their GRT tokens much more economically, with lower gas fees, to access one or more indexers.
It is even estimated that project nodes will be able to redeem rewards with gas costs 300 times reduced.
However, the benefits are not unilateral and also reach the participants of the Arbitrum network.
Network users can reap many benefits from the presence of such a protocol within the ecosystem such as boasting of more direct accessibility to a large amount of data.
Steven Goldfeder, CEO of Offchain Labs, the operating company behind Arbitrum, is excited about the partnership. At an event at the House of web3 in San Francisco, he spoke highly of The Graph’s core business, saying:
“Blockchain data is a key component fueling the next iteration of innovation in web3.”
The potential of the Arbitrum network
The Arbitrum blockchain manifests many potentials in the web3 world, establishing itself as one of Ethereum’s core layers.
Arbitrum inherits the security of the most important network in DeFi in the world, bringing greater scalability in transactions through zk technology while requiring very low fees in parallel.
The network has experienced strong growth in internal activities since July 2022 with an acceleration of the figure near the airdrop that gave away $1.2 billion in ARB tokens to its community.
In particular, the TVL, which tracks the amount of assets locked within the chain’s smart contracts, has tripled in just under a year to allocate itself to the current figure of $2 billion
Its main competitor is Optimism, also a Layer 2 optimistic rollup, which features a token launched with the same strategy by Airdrop.
Compared with Optimism, Arbitrum has been significantly more successful in the decentralized application sector.
First, the network boasts the presence of GMX, a decentralized leveraged derivatives trading protocol that is currently the most popular among DeFi traders.
Compared to velodrome, Optimism’s flagship DEX, GMX has twice the TVL with a value of $467 million.
In addition, the chain can count a number of daily active users growing at a faster rate than its competitor, according to data from The Block and DefiLlama.
In this context, Arbitrum doubles (if not triples) the data recorded by Optimism every day.
Same fate for transactions, definitely more frequent on the network developed by Off Chain Labs with an ATH recorded in March 2023 at the launch of the ARB token that clogged the present RPCs due to the large number of requests.
Also of note is how after the airdrop in that month, the network data remained extremely positive underscoring a community interest that persists over time even months later.
