DeFi
Active Users on Arbitrum Overtake Solana Despite ARB Token Value Drop – DL News
- Daily active users and total transactions on Arbitrum reached new highs on Monday.
- Yet Arbitrum’s governance token is down 58% from its all-time high from earlier this year.
- Arbitrum is still the top layer 2 Ethereum blockchain in terms of total crypto asset value, daily transactions, and daily active users.
As transaction fees reach their lowest level on Ethereum for years, Arbitrum, a layer 2 network built on Ethereum, has reached a record level in activity.
The daily number of active addresses on Arbitrum hit an all-time high of 856,000 on Monday, up 150% from 341,000 in early May.
This push pushed Arbitrum versus Solana 833,000 daily active users, despite the recent popularity on Solana driven by the memecoin trading frenzy.
This comes from the fact that Ethereum Dencun upgrade went live on March 15, reducing transaction costs on layer 2 Ethereum blockchains by up to 99%.
One week before the upgrade, the number of transactions on Arbitrum was only 747,000, and a week later that number rose to 1.5 million, before peaking on Monday.
The Arbitrum DAO also recently made public its intention to invest 35 million ARB tokens in stable and liquid assets.
This has enabled more than two dozen companies present potential productsincluding heavyweights Franklin Templeton, the billion-dollar asset manager, and Securitize, the company helping BlackRock in its quest to tokenize assets.
Despite these major developments, the total value of crypto assets on Arbitrum decreased by 22% to $15.7 billion, compared to an all-time high of $20 billion on April 1.
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Trading volumes on Arbitrum’s decentralized exchanges fell 82% to $404 million from a high of $2.2 billion on March 4.
The price of Arbitrum’s governance token, ARB, has also not held up well.
ARB reached an all-time high of $2.26 on January 11 and moved closer on March 7, hitting $2.17. However, since January, the token is down 58%, now trading at $0.94. In contrast, Ethereum grew by around 10% during the same period.
One of the reasons for the delay in ARB’s price could be the large token unlocked by Offchain Labs, the development team behind Arbitrum, and its investors.
On March 15, approximately $1.2 billion worth of ARB tokens were unlocked and distributed to these groups. These tokens were acquired for one year.
Still, Arbitrum is the preferred layer 2 blockchain overall bridged Ether.
According to data as of April 28just over 1.7 million Ether was transferred to Arbitrum, while Arbitrum’s 14 largest layer 2 competitors only saw around 1.5 million Ether attached to their blockchains.
Ryan Celaj is a data correspondent at DL News. Do you have any advice? Send him an email to ryan@dlnews.com.