Arbitrum, Ethereum’s layer2 (L2) network, hit a new all-time high of 690,000 daily transactions on Feb. 17, according to on-chain data. However, Arbitrum’s growth rate has been faster and is quickly closing the gap with Optimism’s transaction volume.
This indicates a rapidly growing user base and increasing demand for Arbitrum’s services. Additionally, it highlights the platform’s potential for further expansion in the future.
The dominance of GMX on Arbitrum’s derivatives market shows the platform’s potential for niche applications. Additionally, the influx of stablecoins indicates growing interest and trust in the network’s services.
This demonstrates Arbitrum’s ability to compete with established networks and attract users to its platform. Additionally, the growth in DEX trading volume suggests a healthy and active ecosystem.
This highlights the challenge Arbitrum faces in dethroning Ethereum as the dominant blockchain platform for decentralized applications and trading. The dominant DEX on Arbitrum is Uniswap, with $132.19 million, followed by SushiSwap, with $81.78 million.
Gas Usage Spikes
Arbitrum’s gas usage has also increased with the growing network activities, according to Dune analytics data. The L2 network has seen massive spikes in its gas consumption rate compared to other networks, coinciding with the growing number of active wallets on Arbitrum. Dune analytics data shows that it currently has 2.8 million complete addresses, with 2.2 million making at least one transaction.
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In conclusion, Arbitrum’s L2 network is experiencing tremendous growth and adoption, breaking daily transaction records and beating major competitors in DEX trading volume. Its gas usage also indicates a rise in network activities and active wallets, cementing its position as a promising contender in the fast-growing Ethereum ecosystem.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.