Orbiter Finance Records $50 Million Annual Revenue

Orbiter Finance generated over 20,000 Ethereum (ETH) (around $52.7 million) in year-to-date revenue, surpassing the combined earnings of all other third-party cross-chain bridges.

Orbiter Finance, a decentralized cross-chain Layer-2 (L2) protocol, has achieved a significant milestone by securing over $50 million in annual revenue, driven by the growing adoption of L2 solutions.

This achievement positions Orbiter among the most profitable L2 protocols in the market.

L2 solutions are designed to enhance blockchain scalability by offloading transaction processing from the main chain. This approach reduces congestion, lowers fees, and boosts transaction throughput, ultimately increasing the demand for such solutions.

Orbiter Finance Records $50 Million Annual Revenue

According to the latest data, Orbiter Finance has generated over 20,000 Ethereum (ETH) (around $52.7 million) in year-to-date revenue. This figure surpasses the combined earnings of all other third-party cross-chain bridges.

notably, Orbiter ranks above Base, the second-largest L2 scaling solution by total value locked (TVL), which reported $39.075 million over the same period.

Operating within the Ethereum ecosystem, Orbiter Financer provides connections within the mainnet. It facilitates asset transfers across multiple L2 networks, including zkSync, Arbitrum, and others.

According to the team, the protocol has processed over 24 million transactions to date, catering to more than 4 million users globally.

“Cross-chain transactions are increasingly expected to occur without users directly interacting with a bridging protocol’s interface. The Orbiter team is currently focused on enabling seamless cross-chain transactions and ensuring that users can interact with the blockchain without perceiving any fragmentation among Layer-2 solutions,” Iris Cheung, Orbiter Co-Founder, told BeInCrypto.

Read more: A Beginner’s Guide to Layer-2 Scaling Solutions

notably, Orbiter Finance has processed over $16 billion in transaction volume, further highlighting its success within the L2 landscape.

This achievement can be partly attributed to the Maker system, a key revenue generation engine within the protocol.

Commenting on Orbiter's remarkable growth, Suji Yan, the founder of Mask Network, said:

“We saw firsthand the potential of their innovative cross-chain liquidity approach. Their bold integration of zk technology paid off, with Orbiter now holding over 50% of the cross-chain market share. Orbiter’s bet on zk and Ethereum L2s in 2023 has driven their impressive growth. With an ambitious roadmap for a fully interoperable cross-rollup ecosystem in 2024, Orbiter is set to remain a leader in DeFi, and we’re excited to see their continued success.”

L2s remain a prominent narrative in the crypto market, driven by the push for better scalability. These solutions aim to address blockchain challenges, particularly on networks like Ethereum, by enabling faster and cheaper transactions while maintaining strong security and decentralization.

The Allure of Ethereum L2 Scaling Solutions

Based on the L2 dashboard on Dune Analytics, the total bridged TVL in L2 networks currently stands at $18.19 billion.

This figure highlights the growing adoption and utilization of L2 solutions by users and decentralized applications (dApps), showcasing their importance in enhancing blockchain scalability and efficiency.

Among the major players in the L2 space are Arbitrum (ARB), Optimism (OP), and Base, all of which employ optimistic rollups. However, it's worth noting that these rollups are often associated with long withdrawal periods.

For instance, Base withdrawals can take about seven days, which might be a significant delay for users who need quick access to their funds.

Read more: What Is Arbitrum? Everything You Need To Know

This delay can be attributed to Optimism's anti-fraud system, which is reportedly ‘optimistic’ about participants’ honesty. It considers all transactions valid, bundles them together, and submits them to the L1 blockchain.

However, users can challenge transactions and submit potential fraud proofs as part of the optimistic rollup's security mechanism. This leads to a delay in the form of a ‘Challenge period.’ This explains why withdrawals from Ethereum to Base may take a few minutes, while those from Base to Ethereum could take days.

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