Arbitrum network: Decoding reasons behind daily transactions’ hike
- Arbitrum’s Airdrop announcement triggered an increase in daily transactions on the network before it declined later.
- Despite the decline, the network has experienced growth in new users, active users, and stablecoins.
The Arbitrum [ARB] network made headlines due to its highly anticipated airdrop, which has finally begun. Although a significant portion of the airdrop remains unclaimed, some network metrics have experienced a decline while others continue to rise.
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Daily transactions spike on Arbitrum
Arbitrum announced on 16 March that its ARB token would be airdropped on 23 March. The post disclosed that 12.75% of the total supply, which was 10 billion according to the tokenomics documents, would be airdropped.
Following the announcement, daily transactions on the network started to experience an upward trend. According to data from Arbiscan, the L2 network had been experiencing an increase in daily transactions since January, which intensified in February.
On the day of the airdrop, 23 March, daily transactions exceeded 2.7 million.
However, as of this writing, the figure decreased and stood at around 1.8 million daily transactions.
Month-on-month increase in daily and active users
According to data from Dune Analytics, Arbitrum has been experiencing growth in both new and active users. The number of new accounts, at press time, surpassed 441,000, and the total number of registered accounts exceeded three million.
Furthermore, the number of active addresses has been increasing and is now over 1.2 million.
Artemis’s data revealed that the Arbitrum network experienced its highest volume of stablecoins in March. The network’s highest inflow was on 24 March, which amounted to over $162 million, increasing its stablecoin market cap.
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Furthermore, data from Dune Analytics showed that USDC was the dominant stablecoin on the network, accounting for 67%, while USDT constituted 14.2%.
Additionally, in recent weeks, Arbitrum has seen more growth in stablecoins than Optimism.
DefiLlama’s Total Value Locked (TVL) ranking of chains highlighted Arbitrum’s growth, with the network now ranked second on the list.
As of this writing, its TVL stood at $2.13 billion, representing a growth of 17.75% over the past month. Moreover, the data revealed that Arbitrum had $1.85 billion in stablecoin value.