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Arbitrum network: Decoding reasons behind daily transactions’ hike

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Arbitrum network: Decoding reasons behind daily transactions' hike

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  • 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.


Realistic or not, here’s ARB’s market cap in BTC terms


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.

Arbitrum daily transactions

Source: arbiscan

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.

Arbitrum daily and active users

Source: DuneAnalytics

Stablecoins thrive 

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.


How much are 1,10,100 ARBs worth today?


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.

Arbitrum stablecoins flow

Source: Artemis

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.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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