Arbitrum breaks its own record, but what’s the reason for the same?
- Arbitrum’s daily transactions reached a new all-time high.
- Consequently, revenue generated by the platform increased.
Over the past few days, there has been an air of optimism in the crypto space. Arbitrum managed to cash in on this sentiment.
According to new data, Arbitrum has reached a new all-time high in terms of the number of transactions. The network logged in 690,000 daily transactions.
One of the reasons for this spike in activity was the growing number of stablecoin inflow on the network. In the past month, the inflow for USDC increased by 31% and for USDT and DAI, it increased by 45% and 68% respectively.
During the same period, the network growth of these stablecoins also increased. However, DAI’s network growth was low compared to the other stablecoins.
DEX also played a role in increasing activity on Arbitrum. DEXes such as Trader Joe, witnessed a massive uptick in volume over the past few days.
We’re proud to have hit a new all-time-high of over $23m daily volume on Arbitrum, which puts us as a top 3 DEX ??
Yes, that's right – the capital-efficient DEX is now rubbing shoulders with the very best.
And we’re not stopping anytime soon.
— Trader Joe?? | Live on Arbitrum ?? (@traderjoe_xyz) February 18, 2023
A few key addresses
Even though the activity on Arbitrum increased, it is important to note that most of the addresses on the network have made less than 100 transactions.
21% of all the addresses have been one-time users. This implies that the majority of the activity on the network was carried out by a few key addresses.
One of the reasons for the growing activity from these key addresses could be the amount of ETH that was being saved by using Arbitrum.
According to Dune Analytic’s data, the ETH saved by users on Arbitrum has increased marginally.
As a result of all the aforementioned factors, the revenue generated by Arbitrum also went north. According to the token terminal, it increased by 76% in the last month.
Well, the revenue generated by Arbitrum could be put to good use by developing the overall network.
Lastly, the increasing number of daily active users on Arbitrum suggested that developers were working consistently to improve the layer 2 solution.