HomeNewsArbitrum (ARB) Airdrop Ignites Ethereum (ETH) Layer 2 Network, Fueling Surge in...

Arbitrum (ARB) Airdrop Ignites Ethereum (ETH) Layer 2 Network, Fueling Surge in Metrics

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  • Arbitrum’s network usage metrics, such as daily active user count, transaction number, and net on-chain value, have stabilized at higher levels following its DAO token airdrop.
  • Despite the rising popularity of competitor protocols like zkSync and Starkware, Arbitrum maintains its position as the second-largest solution for Ethereum scaling by total value locked in its protocols.

In a departure from the norm, Arbitrum (ARB), following its much-anticipated DAO token airdrop, experienced a sustained upswing in all key usage metrics. Conventionally, the post-airdrop period sees a sharp downturn in blockchain activity, reflecting the transient interest of “airdrop hunters” and “tourists.” However, Arbitrum has defied this trend, presenting a more complex and intriguing case study in the crypto landscape.

The analysis by the Nansen on-chain data provider revealed an unexpected trajectory for Arbitrum’s network usage. Metrics such as the daily active user count, transaction number, and net on-chain value have stabilized at higher levels than they were before the ARB token distribution in March. Similarly, gas spending data and Arbitrum-Ethereum bridge turnover have followed comparable patterns. This development persists despite the rising popularity of competitor protocols such as zkSync and Starkware.

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Maintaining its position in the Ethereum Virtual Machine (EVM) ecosystem, Arbitrum currently ranks second, surpassed only by Polygon (MATIC), the most prominent EVM ecosystem blockchain. Despite the ever-evolving landscape, Arbitrum continues to evolve, recently integrating a Bitcoin-Ethereum interoperability solution known as tBTC in May 2023.

In a nuanced view of the post-airdrop user activity, Nansen’s experts examined the role of airdrop recipients in the ongoing activity on both Arbitrum (ARB) and Optimism (OP), two of Ethereum’s largest Layer 2 solutions. Contrary to conventional belief, these “airdrop hunters” are only responsible for one in twenty transactions. Thus, a significant majority of users appear to be drawn by the long-term value proposition of these networks rather than the immediate benefits of the airdrop.

As of mid-June 2023, Arbitrum stands as the dominant solution for Ethereum scaling by the total value locked in its protocols, accounting for almost 65% of the entire Layer 2 ecosystem. Its closest competitor, Optimism (OP), trails at just 18.55%, according to the L2Beat tracker. These statistics reinforce Arbitrum’s resilient position in the crypto ecosystem, demonstrating the ripple effect of its DAO airdrop beyond anticipated norms.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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