The number of unique addresses on Arbitrum has reached an all-time high, which contributes to the network’s continued rise to preeminence in the layer 2 landscape in the first quarter of 2023. On February 21, the layer 2 scaling solution Arbitrum exceeded Ethereum in the number of daily transactions, thus solidifying Arbitrum’s position as the industry’s preeminent rollup for layer 2.
Arbitrum saw close to a 590% increase in daily transaction volumes
According to the block explorer Arbiscan, the number of daily transactions on the Arbitrum blockchain, which is the fourth-largest blockchain overall in terms of total value locked (TVL), has increased from 159,919 in daily transactions on January 1 to over 1,103,300 at the time of press, representing an increase of approximately 590% in less than two months. This is the fourth-largest blockchain overall in terms of total value locked (TVL).
Moreover, the number of unique addresses on Arbitrum has hit an all-time high of around 2.95 million addresses, and data from the TVL aggregator DeFiLlama reveals that Arbitrum’s TVL increased 81% since January 1 to approximately $1.85 billion.
Following in the footsteps of GMX, a decentralized perpetual exchange native to Arbitrum, which surpassed Ethereum in daily fees the previous week, Arbitrum has moved ahead of Ethereum. According to the data provided by Nansen, the expanding layer 2 ecosystems have also seen the emergence of many new financial applications. Some examples of these applications include Camelot, Vela Exchange, and Radiant Capital. Each of these applications has seen an increase in the number of users and transactions of more than 100% in the preceding twenty-four hours.
Dont rule out Ethereum just yet
Despite the increase in the number of transactions and addresses, Arbitrum is still behind Ethereum when it comes to the cost of using the network.
According to cryptofees.info, the one-day costs for Ethereum’s network have reached an all-time high of $6.7 million, while the one-day fees for Arbitrum’s network have reached an all-time low of about $154,000. This is less than 2.3% of Ethereum’s network fees for the day.
Although there have been no official announcements or plans for an Arbitrum airdrop, the increased activity on the platform may be attributable to users hoping and speculating about the possibility of receiving free tokens, as per to Walter Teng, vice president at Fundstrat Global Advisors. Despite the fact that the Arbitrum team has made no public statements or preparations about a token burn, this is the case.
