Arbitrum, a layer-2 solution project designed to enhance Ethereum smart contracts, has surpassed Ethereum (ETH) in daily transactions, recording an astronomical growth among the most popular blockchains.
In the fast paced world of layer 2 scaling solutions, Arbitrum has managed to assert its dominance once again. The protocol inked several deals over the past few months leading to a remarkable expansion in its user base. With an increase in the adoption of decentralized finance (DeFi), scaling solutions such as Arbitrum and Optimism have witnessed an explosive growth.
Recently, Bernstein revealed that Arbitrum has the fastest-growing user base among leading blockchains with the transaction growth reaching nearly 50% of daily Ethereum (ETH) transactions in January. New user acquisition has doubled in six months, and daily active users are three times higher over the same period. Bernstein noted that Arbitrum is the only chain where liquidity locked is growing. Gautam Chhugani. Managing Director at Bernstein said,
“Arbitrum is seeing aggressive growth in users/active users/transactions/revenue, led by wider adoption and the scale up of DeFi and gaming applications on the chain.”
Arbitrum is on a Roll
According to block explorer Arbiscan, Arbitrum eclipsed Ethereum in daily transactions on February 21 with the number of transactions jumping from 159,919 on January 1 to over 1,103,398, yesterday. The Arbitrum Network has recorded a whopping 590% increase in just over two month. In comparison, the number of daily transactions on Ethereum increased a meager 46% in the same period to 1,084,290,
Furthemore, data from DeFiLlama showed the number of unique addresses on Arbitrum’s network has reached an all-time high of about 2.95 million addresses with Arbitrum’s TVL soaring 81% since January 1 to approximately $1.85 billion. The upswing can be credited to a number of factors including users speculating about a potential Arbitrum airdrop despite no official plans announced. It seems the speculations have been looming around the Arbitrum airdrop since the Optimism airdrop in 2022.
On February 17, the number of transactions on the Ethereum L2 Arbitrum chain reached 690,000, a record high. Since February, the inflow of stablecoins on the Arbitrum has increased significantly. In the past month, USDC has increased by 31%, USDT +45%, DAI +68%. pic.twitter.com/9rukXKkZ0e
— Wu Blockchain (@WuBlockchain) February 18, 2023
Recently, Wu Blockchain took to Twitter to report that Arbitrum witnessed a steady inflow of stablecoins in February. Meanwhile, decentralized exchange (DEX) trading volume on Arbitrum spiked 22% over the past week. As per reports, Camelot, a relatively new DEX on the Arbitrum network, has seen huge growth since launching at the end of 2022.
Arbitrum’s Partnerships Increase
Daily trading volume has jumped 369% since the first day of February, hitting a massive $18 million. Since the beginning of 2023, according to the weekly revenue chart, the company has seen a rise in revenue. Additionally, February has the most significant revenue so far this year, which raised total revenue further.
#Chainlink Automation is live on @arbitrum mainnet!#Arbitrum developers can now build fully automated applications that are decentralized end to end.
See how Automation is already increasing the performance and reliability of highly scalable dApps 🧵⬇️https://t.co/4D1UosPyoA pic.twitter.com/IlkIqx6Y4e
— Chainlink (@chainlink) December 16, 2022
On January 7, non-fungible token marketplace (NFT) OpenSea announced support for Arbitrum Nova allowing users to access the platform as a cheaper option to Ethereum when buying or selling NFTs. In December, Chainlink, one of the leading oracle services providers and Arbitrum announced the launch of Chainlink Automation on Arbitrum One allowing developers to access reliable and performant automation needed to build advanced decentralized applications (dApps) by leveraging a decentralized network of nodes.
