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Arbitrum tops liquidity inflows, pegs BSC, Polygon back

2min Read

The hike in liquidity implies that there has been a lot of token bridging on the Arbitrum chain. One reason for the increase could be the grants the project’s issues lately and more.

Arbitrum tops liquidity inflows, pegs BSC, Polygon back

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  • With $78.38 million in seven days, Arbitrum registered the highest liquidity flow in the market.
  • Speculation around ARB dropped, as well as the search for the asset.

Arbitrum [ARB] has emerged as the top protocol with the highest liquidity in the last seven days. This disclosure was made known by Emperor Osmo, a pseudonymous data connoisseur at digital asset data platform Artemis.


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


Arbitrum gifts bear fruits

According to Osmo, Arbitrum had a net flow of $78.38 million within the said period. This was much more than the liquidity the combination of the Binance Smart Chain, Fantom [FTM], and Polygon [MATIC] zkEVM registered.

The hike in liquidity implies that there has been a lot of token bridging on the Arbitrum chain. Interestingly, this could also be linked to the Short-Term Incentive Program (STIP) introduced by the Ethereum [ETH] L2.

On 14 October, AMBCrypto reported that Arbitrum chose the likes of  PancakeSwap [CAKE] and GMX in its first round of STIP grants. The initiative meant to increase Arbitrum’s dominance in the L2 terrain seems to be yielding fruits with the liquidity hike.

While the increase in liquidity increase is not necessarily linked to ARB, the volume of the token decreased. According to Santiment, ARB’s volume in the last seven days was down to 50.17 million. 

The decrease in volume means that there has been low activity in terms of to-and-fro ARB between external wallets and exchanges. Also, the decline indicates a lack of interest in either buying or selling. 

Arbitrum on-chain volume

Source: Santiment

Fewer eyes on ARB

Although the grants Arbitrum gave out were some sort of good development, the impact on the social volume has been minimal. Based on press time on-chain data, Arbitrum’s social volume decreased.

Social volume is defined as the number of search terms related to an asset. When the metric increases, it means there are a lot of participants on the lookout for happenings within a project. However, ARB’s social dominance depicts that of an asset that is currently being overlooked.

Another metric that had a similar trend like volume and social dominance is active addresses. At the time of writing, the seven-day active addresses on the Arbitrum network were down to 41,100. 

Arbitrum social dominance and active addresses

Source: Santiment


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


Active Addresses show the number of unique users involved in ARB transactions daily. An increase in the metric means that interaction with the token is high. Conversely, when Active Addresses decrease, it means that speculation around a token is low, and that was the case with ARB. 

As it stands, it is likely that Arbitrum will continue to excel with increased liquidity on its network. However, its native token is not likely to experience the same considering the press time sentiment in the market.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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