Altcoin
Is Arbitrum Network’s [ARB] rapid growth under threat from hackers?
- Arbitrum faces security risks as activity on network surges.
- The decline in stablecoin usage may impact Arbitrum’s long-term growth.
Arbitrum [ARB] has been experiencing a significant surge in activity lately due to the upcoming ARB AirDrop. While this has undoubtedly been great news for the network and its users, it has also opened up an opportunity for hackers to target unsuspecting victims. According to Arkham Intelligence, over 2400 accounts have already been compromised.
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A reported hacker on Arbitrum has been sending money over the past 12 hours to around 2400 presumably compromised wallets.
These wallets then approve the ARB token in anticipation of receiving the airdrop.
address – 0x59d4087f3ff91da6a492b596cbde7140c34afb19
Stay safe!
— Arkham (@ArkhamIntel) March 20, 2023
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Vigilance needed ahead
Hackers have been able to target users by taking advantage of the ARB AirDrop. Many users have been expecting to receive the token in their accounts, and hackers have been using this information to send money to these addresses. Following the approval of these transactions, numerous accounts fell victim to the attack.
As the trading volume on the Arbitrum network continued to rise at press time, the network’s users have become a prime target for hackers. However, this surge in users is likely to decrease after the ARB token is launched, providing hackers with only a small window of opportunity to attack their victims.
Source: Dune Analytics
Activity on the Arbitrum protocol
Despite the increase in users on the network, the overall gas used by the network has declined. This suggests that the user activity on the Arbitrum network has decreased.
Source: Dune Analytics
Despite this, revenue generated by the network surged, according to Token Terminal’s data. This has been great news for Arbitrum and its investors. This revenue generated by the protocol could be used for additional upgrades to the network.
Source token terminal
Realistic or not, here’s GMX’s market cap in BTC’s terms
However, one area where Arbitrum has experienced a decline in growth is in terms of stablecoins. Thus, new users may primarily be interested in the ARB token, and not necessarily in using the network for other purposes.
This can potentially impact the long-term growth of the network if it’s not addressed.
Source: Santiment
