Are Arbitrum’s dApps keeping the ecosystem afloat?
- Arbitrum witnessed a surge in network activity through its dApps.
- Whales showed interest in ARB as the price of the token saw green.
The Arbitrum [ARB] ecosystem has flourished over the last year, attracting interest in both the token and its ecosystem. One of the main reasons for the same would be the network’s dApp activity.
Read Arbitrum’s [ARB] Price Prediction 2023-2024
Arbitrum’s dApps do the heavy lifting
A dApp on Arbitrum, known as the MUX protocol, played a great role in increasing activity on the former. The MUX Protocol is a dApp that offers optimized trading cost, deep liquidity, market options, and leveraged trading capabilities for its users.
According to recent data, the fees generated by this protocol surged significantly. This was because the dApp registered an all-time high in terms of volume on the network.
The Arbitrum ecosystem managed to accrue 90% of the fees generated by this protocol at press time, which amounted to $5.2 million.
However, despite the surge in dApp activity, DEX volumes on Arbitrum continued to decline. Along with that, the TVL on Arbitrum also fell significantly during this period. This indicated that the protocol still needed to show some growth in the DeFi sector.
Whales show interest
Even though the DEX volumes and TVL observed a decline in activity, whales showed massive interest in Arbitrum’s ARB token. According to data provided by looknochain, at press time, a significant investor made a massive purchase of $ARB.
The investor deposited 200 $ETH (equivalent to $372.7K) into the Arbitrum network and acquired 321,910 ARB tokens at a price of $1.16 per token. At press time, their holdings amounted to 1.89M $ARB tokens, valued at approximately $2.18M.
The total cost of their purchases amounted to 1,139 $ETH, around $2.05M, with an average buying price of $1.09 per token.
This interest from whales caused ARB prices to surge significantly over the last few weeks. At press time, ARB was trading at $1.171, according to Santiment’s data.
Realistic or not, here’s ARB’s market cap in BTC’s terms
Even though there was a surge in ARB’s price, the network growth of ARB declined. This indicated that new investors were losing interest in the ARB token and the recent spike in price was attributed to old holders.
Additionally, the velocity of ARB also fell during this period, suggesting that the frequency with which ARB was being traded had declined.