Altcoin
Arbitrum ecosystem grows, but is it enough for ARB?
In the past week, Arbitrum’s ecosystem witnessed significant growth, characterized by rising activity and revenue.
- Arbitrum’s ecosystem saw a surge in growth, while its activity and revenue rose as well.
- The price of ARB saw green, as its network growth fell.
When it comes to layer 2s, the Arbitrum [ARB] protocol has been one of the most dominant in the space. However, recently, its growth faced some turbulence, causing people to question whether the progress will continue.
A revival in the works
However, according to recent data, the overall state of the dApps on Arbitrum has grown. Many protocols on the network, such as GMX, showed potential for improvement.
I see recoveries from the lows all around @arbitrum
Not fading the ability of $ARB STIP to drive liquidity growth in a still illiquid market.
I added more to $GRAIL, $GMX, $HMX, and $PENDLE, RDNT. pic.twitter.com/4fdv6mnLRB
— Emperor Osmo? (@Flowslikeosmo) November 6, 2023
The improved performance of dApps on Arbitrum is a positive sign for the protocol. It indicates that despite recent challenges, there’s resilience and room for growth. This can bolster confidence among developers and users, potentially attracting more projects to the platform.
A flourishing dApp ecosystem often leads to increased adoption and overall success for a layer 2 solution like Arbitrum.
It’s essential for maintaining competitiveness in the layer 2 sector, where users and developers seek efficient and robust platforms to build and interact with decentralized applications.
At press time, the number of daily active users on the protocol had grown by 15.7% river the last week. Additionally, the revenue generated by Arbitrum grew by 6.9% during the same period as well.
The recent surge in daily active users and revenue on the Arbitrum protocol bodes well for its future. This growth in user activity signifies a broader adoption of the platform, which is essential for its long-term success.
Moreover, the increase in revenue suggests a higher volume of transactions and activities taking place at Arbitrum. They indicate that users and developers find value in Arbitrum, potentially leading to more investments and further development on the network.
However, it’s crucial to monitor these trends over time to ensure they are not just short-lived spikes.
Realistic or not, here’s ARB’s market cap in BTC’s terms
The ARB token was also doing well at press time. In the last 24 hours alone, its price surged by 0.77%. However, over the last few weeks, the Network Growth declined.
This showed that interest from new addresses in ARB was slowing down, which could hinder the token’s price movement, going forward.
Source: Santiment
