Leading blockchains including BNB Chain, Ethereum, Ronin, Polygon, Avalanche, and Celo, amongst others, have witnessed a significant decrease in on-chain activities in the past seven days, excepting Arbirum, whose on-chain transactions surged by more than 12 percent, according to a Nansen tweet on February 28, 2022.
Layer-2 Blockchains See Decline in Activity
According to a report released by Nansen, a blockchain analytics platform that enriches on-chain data with millions of wallet labels, all the established layer-2 blockchain networks have seen a steep decline in transaction activities in recent weeks except for Arbitrum.
For the uninitiated, layer-2 platforms simply refer to a secondary framework or network built on top of an existing blockchain protocol. The primary objective of layer–2 solutions is to mitigate the transaction speed and scalability challenges plaguing the major layer-1 cryptocurrency networks like bitcoin (BTC), Ethereum, and others.
Nansen notes that seven-day activity in terms of unique addresses, saw a massive drop across the top layer-2 protocols, with only the Ethereum L2 platform posting significant gains in the same period.
The Nansen team has revealed that Arbitrum attracted 46,200 unique active addresses over the past week, representing a 12.7 percent increase and making it the only L2 solution to post gains for this metric in the weekly timeframe.
In contrast, BNB Chain (formerly Binance chain) saw a 2.7 percent decrease in its unique active addresses, Ethereum slumped by 2.9 percent, Ronin -22.1 percent, Polygon -10.9, and Avalanche also witnessed a 14.1 percent decline.
What’s more, on-chain activities in other L2 protocols, including Fantom, Celo, and Arbitrum rival Optimism, also crashed by 4.7 percent, 14 percent, and 17.9 percent respectively.