- Arbitrum’s recently launched grant program was already ushering in liquidity.
- This could be the start of Arbitrum’s growth phase and a potential long-term pivot for ARB.
It’s been roughly one week since Arbitrum announced the launch of its grants program. However, the network already started to experience favorable changes which indicated that the strategy was working.
Is your portfolio green? Check out the Arbitrum Profit Calculator
Arbitrum seems to be using the same playbook that some of the most successful blockchains have used to supercharge growth. Grants are right up there in the list of tools that networks commonly use to attract builders and liquidity.
The same strategy seems to be working for Arbitrum a week after it announced its grant program. It has so far received over $70 million worth of liquidity bridged from other protocols.
Over $70M in assets were bridged into @arbitrum just a week after announcing the launch of their grants program. ?
As a result, Arbitrum tokens have experienced significant growth:
– $SILO: +79%
– $GRAIL: +41%
– $PLS: +33%
– $MAGIC: +11%Is this the beginning of a new trend? pic.twitter.com/2M3YwNOjqf
— Emperor Osmo? (@Flowslikeosmo) September 29, 2023
The grant program has already attracted significant liquidity into some of the tokens on Arbitrum as revealed above. This is likely because investors anticipate that those projects have a high probability of achieving success, hence the surge in demand.
Betting on Arbitrum for the next cycle?
The market’s reaction to the grants program suggested that Arbitrum might be entering a phase of aggressive growth. As such, it is important to keep track of key metrics that may offer insights into its trajectory. Transactions and revenue are some of the best metrics to observe in that regard.
Arbitrum’s revenue has been relatively docile this year, averaging below $50,000. However, there are two instances wherein the revenue soared into the millions. This included 23 March during which it soared to a high of $1.49 million and its historic high of $2.09 million on 12 July.
Source: DeFiLlama
Arbitrum transactions kicked off the first four months of 2023 with robust growth which peaked in March at 3.09 million transactions. The subsequent regression saw transactions on the network dip below the 1 million transaction mark in August and have struggled to recover the same level since then.
It is worth noting that Arbitrum transactions were seen rising once again toward the end of September and reclaimed the 1 million daily transactions mark. This was likely due to the renewed excitement in the Arbitrum ecosystem. As a result, the number of users on the layer 2 network has been rising since 19 September.
Source:: DeFiLlama
The same metric revealed that most of the user activity is from returning users rather than new ones. These findings suggested that Arbitrum was back on a positive growth trajectory and excitement was making a comeback in the network. This could trickle down to the ARB token as investors regain confidence.
Furthermore, ARB’s price action suggested that it may already be happening.
How many are 1,10,100 ARBs worth today
ARB bulls fueled a rally by over 8% during Thursday’s (28 September) trading session. It exchanged hands at $0.90 at the time of writing. ARB might have a promising future if it manages to secure robust growth in the short and long term.
