Are Arbitrum’s Rising Transactions a Hint at Token Launch?

Arbitrum has seen a significant increase in its user base due to the exponential growth in its transaction volume. Recent reports of an increase in TVL and DeFi activity have raised interest in Ethereum’s layer 2, which has also raised the possibility for a token launch.
Arbitrum’s Growing Ecosystem
According to data fetched directly from the blockchain, the number of daily transactions on Ethereum’s L2 network Arbitrum reached a new record of 690,000. Despite this, it is still below its competitor, Optimism L2 Network. Optimism started rewarding its customers with NFT Quest programs at the beginning January. The platform’s daily transaction volume soared to over 800,000.


Read more: Check out the Top 10 DeFi Loan Platforms of 2023
According to L2Beat data, transactions on the Arbitrum chains Nova or One have increased by 170.22% and 68.19% respectively in the past week. In addition, the number of unique addresses used to access the network has seen a significant increase in the last few months.
Arbitrum Unique Addresses
Nansen posted that the L2 network saw unprecedented investment levels and the highest ever proportion of transactions exceeding $10,000. A large influx was also due to user rumors of an airdrop from L2 network.
Trending Stories

There have been persistent reports since the start of the Arbitrum project that the native token will soon become available for purchase. It is possible that the token will be distributed via an “Airdrop” to those who have already been connected to the network upon its launch. Airdrops are often used by cryptocurrency projects as a way to advertise their products. They involve the distribution of tokens or coins free of charge to a large audience.
DeFi Activities on the Rise

Dune Analytics has provided statistics that show that the increasing number of transactions is having an effect on the revenue generated through the Arbitrum network. L2Beat data at the time of publication shows that Arbitrum’s total assets (TVL), has increased to $3.27 Billion. DeFillama however, estimates that the current TVL is around $1.8 billion. Arbitrum experienced a steady influx of stablecoins in February, during which time. Wu blockchain provided information that shows that USDC’s inflow increased by 31% while USDT and DAI inflows rose by 45% and 68% respectively. At the time of writing, USDT, USDC and the price of DAI remained at $1.

DeFiLlama reports that the Arbitrum DEX transaction volume reached $2.62 Billion in the past week. This is a 34% increase YOY, surpassing Ethereum’s weekly record. Most of Arbitrum’s native application tokens have increased in the past 7 days….
— Wu Blockchain (@WuBlockchain), February 20, 2023
Both the launch date and distribution method for the Arbitrum token are still unknown. However, investors continue to trade on the platform in the hope that they will be in a stronger position after the token’s release.
Also read: Here’s Why Bitcoin (BTC), Price Could See a Major Correction Soon

About the author

The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

Crypto Stories
View all