ARB

Arbitrum Overtakes Ethereum in Daily Transactions Once Again: Is This a Sign of a Bigger Trend?

by BSC News

April 24, 2023

chain

The utility and gaming sectors on the Arbitrum network saw impressive growth of 581.56% and 271.66%, respectively, over the month.

Arbitrum's Utility and Gaming Sectors Lead the Way

Arbitrum surpassed Ethereum in terms of daily activity on April 23 with 367.68 transactions against Ethereum’s 261.86k, according to data from Artemis. However, before that Arbitrum exceeded Ethereum in terms of daily transactions twice this month, on April 17 and again on April 19.

Source: Daily active addresses on Ethereum and Arbitrum.

Among all the transactions, 298584 transactions were completed in the Arbitrum utility sector, which grew by 581.56% in the last 30 days. In contrast, the Arbitrum gaming sector saw 142,118 transactions, up 271.66%.  

With the wide adoption of the Arbitrum protocol, TVL in its smart contracts has also increased significantly. As per DeFillama's data, the Arbitrum protocol ranks fourth after BNB Chain in terms of TVL. In this regard, its growth over the last six months has outperformed that of most other projects, with a TVL of $3.57 billion.

In addition to active daily addresses, Arbitrum lead Ethereum in daily transactions, with 1.13 million on April 23. Further, Arbitrum recently surpassed 200 million transactions

Source: Daily transactions on Arbitrum and Ethereum

Arbitrum also launched its token on March 23 with a much-anticipated airdrop to members of its community. 

Although Arbitrum's protocol saw a lot of activity, the number of active developers on the network did not. Token Terminal’s data showed a significant decline in the number of active developers on the network over the past month. The number of developers on April 23 stood at 21, a decline from 32 on March 29.

Despite the protocol's positive performance, overall sentiment towards ARB has been bearish, with a fear and greed index of 53. Furthermore, the Arbitrum Foundation has come under fire for its recent governance proposals. 

As a result of the decrease in the hype surrounding Arbitrum, network activity and transaction volume decreased.

Arbitrum($ARB) is trading at $1.34, down 7.21% in 24 hours, with a market cap of $1.7 billion.

What is Arbitrum:

Arbitrum is an Ethereum layer-2 network that allows developers to build and deploy highly scalable smart contracts for a low cost. Arbitrum chain will enable developers to use Web3 apps, deploy smart contracts, etc., but transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic roll-up protocol that inherits Ethereum-level security.

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