Arbitrum outperforms Polygon and Optimism in this key area
- Arbitrum generated higher revenue compared to other L2 solutions with no token incentives.
- NFT trading volume surged on Arbitrum.
Arbitrum was observed to be generating more revenue when compared to other layer-2 solutions like Optimism and Polygon.
According to data provided by the token terminal, Arbitrum generated $14.4 million in revenue without accumulating any overhead by offering token incentives.
On the other hand, Polygon generated $5.6 million in revenue but had $599 million of token incentives or costs. For Optimism, the revenue generated was $7.4 million but its token incentives were $70 million.
Arbitrum’s fat pockets
This lack of overhead for Arbitrum could have a positive impact on the future of the layer 2 solutions. Meanwhile, with an increasing number of unique users on Arbitrum, the revenue generated by the protocol will continue to grow.
Furthermore, the number of unique users on Arbitrum could grow even further. Thanks to the popular NFT collection, Pudgy Penguins, which is set to launch on the layer 2 solutions.
In a recent tweet, the Pudgy Penguins collection announced that it would be becoming a multichain collection. This would also add to the already increasing Arbitrum NFT trading volume.
Notably, the amount of ETH saved by Arbitrum users observed a surge over the last month. This is likely due to the lower costs associated with using the Arbitrum network compared to other layer-2 solutions.
However, there is one area where Arbitrum witnessed a decline. It was the network growth of stablecoins on the Arbitrum network which decreased gradually, as per the data by Santiment.
A decline in network growth suggested that the number of new addresses transferring these stablecoins on the Arbitrum network went down over the last month.
Overall, the data provided by the token terminal suggests that Arbitrum is a strong player in the layer 2 solutions market.
The lack of overhead and the growing number of unique users on the network could lead to further growth for Arbitrum in the future.
The NFT and trading volume increase, and the savings made by Arbitrum users also show that there’s a growing interest in this Layer 2 solution.
However, the only aspect that has seen a significant decline is the ‘network growth of stablecoins’ metric on the protocol.