Connect with us


What does Aave’s growth on Arbitrum mean for the current state of L2s



Source: Pexels

  • Aave grew on the Arbitrum network but declined on Ethereum
  • Arbitrum’s TVL witnessed growth, and the number of transactions on the protocol rose

 According to new data from Dune Analytics, Aave [AAVE] users on Arbitrum witnessed major growth. More and more users have increasingly switched to Arbitrum, indicating that L2 adoption was rapidly rising.

Source: Dune Analytics

Read Aave’s [AAVE] Price Prediction 2023-2024

Arbitrum is a major layer 2 solution that has been contributing to the growth of the sector. Its TVL grew tremendously over the last few weeks and sat at 1.08 billion at the time of writing after appreciating by 1.24% in the last 24 hours.

However, despite the TVL growth, Arbitrum’s activity and TPS were unable to rise. The latter declined by 26.78%, according to data from L2beats.

Source: DefiLlama

Regardless of the momentary decline in Arbitrum’s TPS, the number of transactions on the protocol grew significantly since September. Even though there was volatility observed in the number of transactions, overall, the number of transactions kept moving in a positive direction.

Furthermore, the number of unique users on the L2 protocol increased from 1.7 million to 12.16 million in the last month, according to Arbiscan.

Source: Arbiscan

State of Aave on Ethereum

The growing presence of Aave on Arbitrum had a correspondingly negative impact on Aave’s presence on the Ethereum [ETH] network.

As can be seen from the image below, the volume for Aave on Ethereum decreased rapidly. Additionally, large addresses also lost interest in Aave. This was indicated by the declining top addresses holding AAVE on the network.

Aave’s network growth decreased as well, thus, signifying that the number of new users transferring the coin for the first time on Ethereum’s network shrank.

Source: Santiment

It remains to be seen whether the growth of Aave on the Arbitrum network points to a larger shift to L2 networks.

At the time of writing, AAVE was trading at $61.52, according to CoinMarketCap.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.