Arbitrum: Do rising transactions hint towards token launch anticipation?
- Arbitrum saw investment and transactions of $10,000 or more ramp up.
- Revenue and TVL saw an increase.
The increased volume of network transactions has led to a remarkable expansion in the user base of Arbitrum. Recent reports from Nansen pointed to another possible driver of this expansion beyond the service’s apparent swiftness and low cost. How have the company’s income and Total Value Locked (TVL) been affected by the rise in transactions?
Arbitrum transactions pick up
Arbitrum is an optimistic rollup-based layer-2 scaling solution for Ethereum that improves transaction throughput and lowers transaction fees. Its goal is to make Ethereum transactions faster and cheaper without compromising the network’s decentralization or security.
According to a post by Nansen, the L2 network has recently seen unprecedented levels of investment and the highest-ever percentage of transactions of $10,000 or more. Moreover, users’ speculation of an AirDrop from the network caused an enormous inflow.
Since Arbitrum’s inception, there have been rumors regarding the impending release of its native token. There is also speculation that, upon debut, the token will be “AirDropped” to users already connected to the network. Cryptocurrency projects often utilize AirDrops as a kind of advertising, handing out free tokens or currencies to a big audience.
Revenue and TVL turn positive
According to statistics from Dune Analytics, the increasing transaction volume is positively affecting the revenue of the Arbitrum network. 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.
Even more encouraging is that the Total Value Locked of Arbitrum has been increasing consistently. The TVL, as reported by DefiLlama as of this writing, was $1.47 billion. Furthermore, the DefiLlama graph clearly showed that the present TVL level was the highest it had been in months. May 2022 was the last time it reached those heights.
Both the date and the mechanism of the Arbitrum token launch are still up in the air. Despite this, investors transact on the platform, hoping they will be in a better position when the token launches. But whether their optimism will be justified is still unknown.