Arbitrum’s [ARB] daily users skyrocket, but the reason is not what you might think
- Arbitrum’s daily users spiked on 23 March when the ARB token was launched.
- TVL has been rising, as has ARB’s price and number of holders.
As per Token Terminal’s findings on 10 April, Arbitrum’s [ARB] daily active addresses increased by more than 140% over the last 30 days. The considerable surge suggested a massive influx of new users onto the network. However, the reality might be a little different.
— Token Terminal (@tokenterminal) April 10, 2023
How much are 1,10,100 ARBs worth today?
The credit goes to ARB
A closer look at Token Terminal’s chart pointed out an interesting development, which could have been behind this surge. There was a massive uptick in daily users on 23 March, during the time when Arbitrum’s native token was launched.
These can fuel growth in the future
Though the surge was short-lived, several datasets suggested that the possibility of an increase in daily users on Arbitrum could not be ruled out. For instance, Dune’s data revealed that successful transactions on the Arbitrum network have been on an increasing trend for quite a few months.
This increase indicated a hike in the usage of the network. Not only that, but Arbitrum’s average gas price has been considerably lower than that of Ethereum [ETH], which could also help lure new users onto the network.
Arbitrum network value on the rise
It was also interesting to see a growth in Arbitrum’s network value. As per DeFiLlama’s data, ARB’s TVL has been increasing for a month. Moreover, in the last 24 hours, Arbitrum’s TVL went up by over 1%.
Not only TVL, but a similar rise was also noted on Arbitrum’s price front. CoinMarketCap’s data revealed that ARB’s price turned bullish and increased by over 4% in the last 24 hours. At press time, it was trading at $1.24, with a market capitalization of over $1.5 billion.
This increment happened when a new proposal surfaced, which called for returning these tokens from the Arbitrum Foundation to the DAO.
Realistic or not, here’s ARB market cap in BTC’s terms
Not everything is picture perfect
All the aforementioned developments couldn’t help improve investor sentiment around ARB, which remained low, as suggested by weighted sentiments. ARB’s 24-hour gains were not backed by a substantial increase in volume, which looked somewhat concerning.
Nonetheless, the number of ARB holders has been on the rise, which indicated investors’ faith in the token. ARB’s network growth has also remained relatively high. Additionally, whales also seemed to have an interest in ARB, as evident from whale transaction counts.