Arbitrum has seen a tremendous surge in its user base in recent times as a direct result of the exponential growth recorded in it’s transaction volume. Recent reports of increased TVL and DeFi activity have sparked renewed interest in the Ethereum’s layer 2 solution, which has also raised the possibility of a token launch for the network.
Arbitrum’s Growing Ecosystem
On February 19, the number of daily transactions on Ethereum’s L2 network Arbitrum, reached a new all-time high of 690,000, as indicated by the data fetched from the blockchain. Despite this, its record is still lower than that of its competitor, the Optimism L2 network. When Optimism began rewarding its customers with an NFT Quest program at the beginning of January, the platform’s daily transaction volume skyrocketed to an all-time high of over 800,000.
However, according to data provided by L2Beat, the number of transactions carried out on the Arbitrum chains Nova and One increased by a respective 170.22% and 68.89% in the past week. Additionally, the unique addresses for the network have also seen a significant uptick in the past couple of months.
The L2 network has experienced unprecedented levels of investment and the highest-ever proportion of transactions of $10,000 or more, according to a post by Nansen. Furthermore, there was a massive influx due to user rumors about an airdrop from the network.
Since the beginning of the Arbitrum project, there have been persistent reports that its native token will soon be made available for purchase. There is also the possibility that, upon the token’s launch, it will be distributed via “Airdrop” to users who are already linked to the network. Airdrops are frequently used as a form of advertisement by cryptocurrency projects and involves the distribution of free tokens or coins to a large audience.
DeFi Activities Surge
Statistics provided by Dune Analytics indicate that the growing number of transactions is having a beneficial effect on the revenue generated by the Arbitrum network. According to data from L2Beat as of the time of publication, the total value of assets (TVL) locked on Arbitrum has increased to $3.27 billion. However, figures provided by DeFillama, the current TVL is at around $1.8 billion. During this time, Arbitrum had a consistent influx of stablecoins during the month of February. The information provided by Wu blockchain, notes that the inflow of USDC climbed by 31%, while the inflow of USDT and DAI increased by 45% and 68%, respectively. USDT, USDC & the price of DAI all remained pegged to $1 at the time of writing.
According to DeFiLlama, in the past week, the DEX transaction volume on the Arbitrum reached $2.62 billion, a YOY increase of 34%, setting a new weekly high, second only to Ethereum. Most of Arbitrum’s native application tokens have increased in the past 7 days.… https://t.co/WwWg0twWYA
— Wu Blockchain (@WuBlockchain) February 20, 2023
The launch date of the Arbitrum token as well as the method by which it will be distributed are both still unknown at this time. Investors, however, continue to conduct transactions on the platform in the expectation that they would be in a stronger position once the token is released.
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