Arbitrum Transaction Volume Spikes With Increased DeFi Activities

According to on-chain data, daily transactions on Ethereum’s layer2 (L2) network Arbitrum touched a new all-time high of 690,000 on Feb. 17.

However, its record is still behind its rival L2 network, Optimism. Optimism’s daily transactions touched an all-time high of over 800,000 in early January when it incentivized its users with an NFT Quest program.

L2Beat data shows that transactions on Arbitrum’s chain Nova and One rose 168.81% and 67.88% in the last seven days.

Source: Arbiscan

Arbitrum’s DeFi Activities Rise

The total value of assets (TVL) locked on Arbitrum has risen to $3.27 billion as of press time, according to L2Beat data. DeFillama data shows that the TVL stands at $1.8 billion.

Per DeFillama, derivatives platform GMX dominates the network with a TVL of $522.76 million. Zyberswap and Uniswap follow it.

Meanwhile, Wu Blockchain reported that Arbitrum witnessed a steady inflow of stablecoins in February. According to the reporter, USDC’s inflow grew by 31% while that of USDT and DAI increased by 45% and 68%, respectively.

Source: DeFillama

Cumulatively, the total Arbitrum stablecoin market cap sits at $1.26 billion, with USDC accounting for 66% of it, according to DeFillama data.

DEX Trading Volume Beat Binance Smart Chain

Meanwhile, decentralized exchange (DEX) trading volume on the L2 network has grown over the past week by over 22% to the second-largest, according to DeFillama data.

Arbitrum’s DEX trading volume beat storied rivals like Binance Smart Chain (BSC), Polygon, and others in the last 24 hours. Per the data, Arbitrum recorded $307.26 million, above BSC’s $272.71 million and Polygon’s $159.15 million.

However, its volume is miles behind that recorded on Ethereum mainnet, which stands at $1.14 billion.

In the last 24 hours, the dominant DEX on Arbitrum is Uniswap with $132.19 million, followed by SushiSwap with $81.78 million.

Gas Usage Spikes

Arbitrum’s gas usage has also increased following the increased network activities.

According to Dune analytics data, the L2 has seen massive spikes in its gas consumption rate compared to other networks.

The increased gas consumption rate has coincided with the growing number of active wallets on Arbitrum. Dune analytics data shows that it currently has 2.8 million full addresses, with 2.2 million making at least one transaction.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *