Top Arbitrum Ecosystem tokens by market capitalization

Arbitrum operates on top of the Ethereum mainnet as a layer 2 solution. While it provides enhancements in terms of scalability and efficiency, it remains deeply integrated with and reliant on the Ethereum network's underlying infrastructure.

Tokens in the Arbitrum ecosystem are designed to thrive within its environment, benefitting from the system's optimizations. However, they maintain compatibility with the wider Ethereum network and can be used in similar ways to other Ethereum-based tokens, but with added advantages when used within the Arbitrum ecosystem.

Arbitrum stands out due to its unique combination of optimistic rollups and off-chain computation. This allows it to offer lower transaction fees and faster confirmation times while ensuring high security and compatibility with Ethereum-based dApps.

Arbitrum boasts a peak load transaction processing speed of up to 40,000 TPS, a significant leap from Ethereum's current 13 TPS.

Validators in Arbitrum assist in processing transactions off-chain. They submit proofs to the Ethereum mainnet and, in the event of disputes, ensure that the state is correctly computed.

While Arbitrum offers significant benefits in scalability and cost, there's an increased complexity due to its layer 2 nature. This might include new considerations in dApp development and user experience, especially concerning bridging assets between layers.

While both Arbitrum and sidechains aim to offer scalability, there's a key difference in security models. Arbitrum derives its security from the Ethereum mainnet, meaning it relies on Ethereum's consensus and security. Sidechains, on the other hand, often have their own consensus mechanisms and may not be as secure as the mainnet.

Arbitrum uses "optimistic rollups", which rely on a challenge period. During this time, if a false or malicious transaction is identified, it can be disputed. This mechanism ensures security but might introduce delays in transaction finality until the challenge period is over.

The sequencer is a component of Arbitrum that processes transactions before they're batched and submitted to Ethereum. It's a mechanism to provide users with faster transaction confirmations, even though finality still depends on Ethereum mainnet.

-GMX: A decentralized spot and perpetual exchange that supports low swap fees and low price impact trades.Trading is supported by unique multi-asset pools that earns liquidity providers fees from market making, swap fees and leverage trading.Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges. -Gains Network: Gains Network is developing gTrade, a liquidity-efficient, powerful, and user-friendly decentralized leveraged trading platform. The protocol revolves around the ecosystem's ERC20 utility token (GNS) and ERC721 utility token (NFTs). GNS and the NFTs are designed to be actively used within the platform (utility) and to allow ownership of the protocol through revenue capture & governance (soon). It includes GNS holders receiving platform fees through Single Sided Staking, burning of GNS using platform revenue, NFT holders getting reduced spread and boosted rewards, as well as NFT bots executing limit orders and liquidations. -Treasure: Treasure is the decentralized game publisher on Arbitrum built for community-driven games. Every project listed on the Treasure platform utilizes MAGIC in their respective metaverses, with each community inventing its own lore and storytelling for this resource. MAGIC, the native token of Treasure, is the sole currency for marketplace transactions. In this way, MAGIC acts as the reserve currency for the entire web of metaverses connected under the Treasure umbrella.