Arbitrum tops liquidity inflows, pegs BSC, Polygon back
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.
- 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.
Over the past 7 days, $ARB has emerged as the protocol with the highest liquidity inflows.
Arbitrum surpassed BSC in net deposits by more than 10x this week.
The STIP effect? pic.twitter.com/TNdNxtPbfc
— Emperor Osmo 🐂 🎯 (@Flowslikeosmo) October 14, 2023
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.
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.
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.
