Arbitrum has seen a huge increase in its user base in recent years as a direct result of the exponential growth recorded in its trading volume. Recent reports of increased TVL and DeFi activity have sparked renewed interest in 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 Arbitrum’s L2 network reached a new all-time high of 690,000, as indicated by data retrieved 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 in early January, the platform’s daily trading volume soared to an all-time high of over 800,000.
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However, according to data provided by L2Beat, the number of transactions carried out on the Arbitrum Nova and One chains increased by 170.22% and 68.89% respectively last week. In addition, unique addresses for the network have also seen a significant rise over the past two months.
The L2 network has experienced unprecedented levels of investment and the highest rate of transactions of $10,000 and above, according to a post by Nansen. In addition, there was a massive influx due to user rumors of airdrops from the network.
Since the beginning of the Arbitrum project, there have been persistent reports that its native token will soon be available for purchase. There is also the possibility that when the token is launched, it will be distributed via “Airdrop” to users already connected to the network. Airdrops are often used as a form of advertising by cryptocurrency projects and involve distributing free tokens or coins to a large audience.
Increase in DeFi activities
Statistics provided by Dune Analytics show that the increasing number of transactions has a beneficial effect on the revenue generated by the Arbitrum network. According to data from L2Beat at the time of publication, the total value of assets (TVL) locked in Arbitrum has increased to $3.27 billion. However, the figures provided by DeFillama, the current TVL is about $1.8 billion. During this time, Arbitrum had a steady inflow of stablecoins during the month of February. Information provided by Wu blockchain notes that USDC inflow increased by 31%, while USDT and DAI inflow increased by 45% and 68%, respectively. USDT, USDC and DAI price remained pegged at $1 at the time of writing.
According to DeFiLlama, last week, DEX trading volume on Arbitrum reached $2.62 billion, up 34% year-on-year, setting a new weekly high, second only to Ethereum. Most of Arbitrum’s native application tokens have increased in the last 7 days.… https://t.co/WwWg0twWYA
— Wu Blockchain (@WuBlockchain) February 20, 2023
The release date of the Arbitrum token as well as the method by which it will be distributed are still unknown at this time. Investors, however, continue to trade on the platform with the expectation that they will be in a stronger position once the token is released.
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