As Ethereum's scalability challenges pushed transaction fees to record highs in 2021, Layer 2 (L2) networks emerged as the critical solution. Among these, Arbitrum has become a leader of the pack, attracting thousands of developers who are reimagining what's possible when blockchains become fast and affordable.
The numbers tell Arbitrum's growth story; the network processes nearly 6 million weekly transactions across more than 38 million total accounts. This adoption has brought substantial liquidity, with over $8.4 billion in bridged assets distributed across ETH ($3.1 billion), stablecoins ($3 billion), and other tokens ($2.3 billion).
But numbers don't tell the whole story. The real excitement comes from the diverse range of projects taking root on Arbitrum. From innovative DeFi protocols transforming how we trade, to ambitious gaming platforms redefining what's possible in the space, teams are building applications that were economically impractical (i.e. too expensive to operate) on Layer 1. With transactions that are both fast and cheap, developers are building on L2s to create the interactive experiences users want, without gas fees getting in the way.
In this deep dive, we’ll explore notable projects across different categories in the Arbitrum ecosystem. Whether you're a developer looking to build something cool, a crypto enthusiast keeping tabs on what's next, or just curious about how Layer 2s are changing the game, we'll walk you through why Arbitrum has become one of Web3's busiest networks.
Table of contents
Understanding Arbitrum tech
Arbitrum improves Ethereum using a technology called optimistic rollups, making it faster and cheaper to transact while keeping security intact. There are currently two Arbitrum “production” chains: Arbitrum One and Arbitrum Nova, each built for different purposes.
Arbitrum One: The foundation
Arbitrum One came first and is “designed for general use” as a solution for projects utilizing Ethereum-compatible smart contracts. Arbitrum One uses optimistic rollup technology, bundling multiple transactions into batches that are settled on Ethereum (L1) — to provide faster transactions at a fraction of the cost, without compromising security. This is where Arbitrum’s most major (i.e. DeFi) applications and large transactions happen.
Arbitrum Nova: Built for speed
Arbitrum Nova is positioned as Arbitrum's “high-performance” chain designed for applications requiring extreme speed and cost efficiency. It’s a go-to for any app where speed and low costs matter. Whether it’s games, social platforms, or tools that need constant user interaction, we’ve seen developers lean on Nova to handle high-frequency transactions without breaking the bank.
While Arbitrum One uses what the Arbitrum docs call “the purely trustless Rollup protocol”, Arbitrum Nova uses Arbitrum’s “mostly trustless Anytrust protocol.” AnyTrust chains manage data entirely off-chain, utilizing a data availability committee (DAC) to speed up storing, batching, and posting L2 transaction data to Ethereum.
Key network upgrades
The Nitro upgrade
In August 2022, Arbitrum got a major upgrade called Nitro that delivered:
- Faster, cheaper transactions using newer technology
- Better data compression to reduce costs
- Quicker asset movement between Ethereum and Arbitrum
- Improved security with less computational overhead
Nitro made Arbitrum faster, cheaper, and more reliable.
The Stylus update (2024)
Launched in September 2024, Stylus brings a significant technical upgrade to both Arbitrum One and Nova networks. Before Stylus, blockchain development was limited to Solidity—a specialized language known by roughly 20,000 developers worldwide. This upgrade transforms the development landscape by enabling developers to write smart contracts using the languages they're already familiar with, like:
- Rust (3 million developers)
- C/C++ (12 million developers)
- Other popular languages (through something called WASM)
How Stylus works
Comparison diagram of EVM-only to MultiVM. Source: Arbitrum
Stylus adds a second virtual machine (WASM) alongside Arbitrum’s existing one (EVM).
This new WASM virtual machine:
- Works together with existing Arbitrum apps
- Makes programs run faster and cost less
- Keeps everything secure and separate
Why this matters:
- Much cheaper to run complex applications
- Developers can build more sophisticated features using familiar tools
- New apps can easily connect with existing blockchain projects
A connected ecosystem
The combination of Arbitrum's networks and upgrades has created an infrastructure that offers:
- Thousands more transactions per second than Ethereum
- Much lower fees for all types of activities
- Easy transition for Ethereum developers and apps
- Secure movement of assets between networks
- Built-in protections for user assets
These features, combined with continuous technical improvements, have helped establish Arbitrum as one of Web3's most active platforms.
Disclaimer: This information is for educational purposes only and isn’t financial advice.
The Arbitrum ecosystem: A growing Web3 landscape
Today, hundreds of projects call Arbitrum home. From DeFi protocols and social platforms to games and trading applications, teams are finding unique ways to leverage the network's speed and affordability. Let’s look at some of the hot Arbitrum projects and categories.
DeFi
Popular decentralized finance platforms for trading and moving assets across chains.
Jumper Exchange platform
Bridge solutions:
- Jumper: Swap tokens between different chains
- Orbiter Finance: Fast, cheap transfers between networks
- Stargate: Move assets across chains with deep liquidity
Trading platforms:
As is always the case, do your own research before adopting or getting involved with any blockchain project.
One tool that can help with research is Dispatch (made by us): one of the easiest ways to track on-chain activity for projects on Arbitrum One and other leading EVM networks, and no code required.
DeFi activity to track
- Asset movements: Monitor transfers
- Trading activity: Track swaps and trades
- Liquidity changes: Follow when pools gain or lose funds
- Protocol updates: Monitor fee changes
- Security events: Track pauses or emergency actions
Want to track DeFi activity on Arbitrum?
Check out our step-by-step guide to setting up DeFi monitoring, or watch our quick tutorial video to see it in action.
Social & community
Galxe quest platform
The ecosystem includes platforms for connection and engagement. Many of these projects are multi-chain.
- UXLink: Connect with other crypto users and communities
- Galxe: Complete tasks to earn rewards and build your Web3 profile
- Layer3: Learn about crypto projects while earning rewards
- Carv: Connect with other gamers and track your achievements
- Dmail Network: Send encrypted messages and emails on the blockchain
What to watch in social projects on Arbitrum
- User activity: Monitor new registrations and profile creations
- Quest events: Track task completions and reward distributions
- Badge mints: Follow when users earn achievements or credentials
- Social interactions: Monitor posts and content engagement
- Points/XP: Track when users earn or spend platform points
Gaming
The Web3 gaming landscape continues to expand; here are some popular projects on Arbitrum.
- CryptantCrab Prime: Battle other players with your unique digital crabs
- Hanafuda: Classic Japanese card game with a modern twist
- Gomble: Collection of casual games you can play and earn from
What to watch in games on Arbitrum
- Quest/battle events: Monitor matches starting, tournament launches, and quest completions
- Player actions: Track when items are crafted, upgraded, or traded
- Player milestones: Track achievements and level-ups
- Token activity: Follow game token movements, rewards, and trading patterns
- Contract updates: Stay informed about game updates and new features
Smart contract activity from LiFi Diamond on Arbitrum
Gambling platforms
JustBet gambling platform
These platforms let you play casino games and place bets using crypto.
- JustBet: Sports betting and predictions
- BetSwirl: Casino games with verified fairness
- Azuro: Sports betting and odds platform
- Overtime Markets: Predict sports outcomes and win rewards
What to watch in gambling projects on Arbitrum
- Bet placements: Monitor when bets are placed
- Game results: Track game outcomes and payouts
- Jackpot events: Follow major wins and prize pool distributions
- House stats: Monitor bets, wins, and platform activity
- Vault changes: Track changes in betting pools and liquidity
Wallets
Arbitrum supports major Web3 wallets:
- MetaMask: Industry-standard Web3 wallet
- Trust Wallet: Mobile-focused solution
- Rainbow: User-friendly interface
What to watch in wallets on Arbitrum
- Token movements: Monitor transfers in and out of wallet
- Mints: Watch for new token mints
- Balance Changes: Track changes in wallet holdings
- Burns: Keep an eye on token burns to see how they affect supply
The road ahead
The Arbitrum ecosystem continues to expand and improve. With updates like Stylus, more developers can bring their skills to blockchain, while improvements in cross-chain technology make it easier to move assets between networks. The vision is clear: bringing blockchain to everyone, not just the pros.
As the ecosystem grows, keeping track of all these moving pieces becomes increasingly important. Dispatch can help monitor these network upgrades, project launches, and key metrics, giving builders and communities the insights they need to continue growing.
With each new development, Arbitrum shows how blockchain technology can become more accessible, efficient, and practical. As the next wave of builders pushes these boundaries even further, we're excited to see what they'll create next.
Building on Arbitrum? We can help!
