2022 Review of Optimistic Rollups

The overall landscape for optimistic rollups (ORs) has largely been dominated by Arbitrum and Optimism, accounting for more than 85% of the total value locked (TVL) across all Ethereum-based ORs throughout 2022.

Arbitrum and Optimism attracting and retaining liquidity was the result of convenience, first mover advantage and, most importantly, liquidity itself. While Arbitrum and Optimism were launched much earlier than the other ORs, they also provided convenient avenues for bridging liquidity between Ethereum and the rollups, either through the official bridge (with a 7-day withdrawal period) or through third-party bridges, such as Hop Protocol, which charge users a fee for instant withdrawals. This allowed both rollups to quickly gain adoption and cement their first-mover advantage.