Arbitrum is quickly becoming one of the most important projects in crypto. But, why?

‍What’s happening:‍

• Layer 2 Ethereum scaling platform Arbitrum is seeing significant growth recently and is becoming one of the fastest growing projects in all of crypto
  

By the numbers:‍

• Arbitrum is currently the 38th largest digital asset in the world
  
• The market capitalisation of Arbitrum is approximately $21B USD
  
• Arbitrum has successfully completed more than 500M individual transactions
  
• The average transaction on Arbitrum costs approximately just 0.26 cents in comparison to an average transaction fee of $5.00 on Ethereum
  
• The low cost transactions powered by Arbitrum have saved approximately 1.73M Ethereum in total gas fees
  
• There is more than $11B USD in total value locked on Arbitrum, which represents 49% of all total value locked on Ethereum layer 2 protocols
  

Market reaction:‍

• Arbitrum's token is up +89% in the last month
  

How it works:‍

• Arbitrum is built upon optimistic rollups, which executes transactions off-chain and bundles them together in large batches and then submits them onto the Ethereum blockchain
  
• By executing transactions off-chain, Arbitrum helps reduce the costs of Ethereum transactions by lessening the overall computational power and storage required
  
• However, because the transactions are done off-chain, there is a challenge period in which users can dispute transaction if they have proof they are fraudulent
  

Going deeper:‍

• Arbitrum has established many notable partnerships for their Layer 2 scaling technology, including Chainlink, Aave, Curve, Uniswap and others