Arbitrum protocol exceeds ETH in daily activity for the second time
- Arbitrum One’s performance led to the network passing the 200 million transaction mark and attracting attention.
- The decline in hype around the network led to a decline in network activity and transaction volume.
- Despite the high activity, the number of active developers and code commits on GitHub decreased.
The Arbitrum protocol has recently reached over 200 million transactions. Experts claim that the performance of the protocol’s main network, Arbitrum One, is the reason. What can the market expect when it comes to Arbitrum’s token airdrop?
Initially, Arbitrum attracted a lot of interest when it announced the release of its long-awaited token airdrop. The protocol even surpassed in terms of daily active addresses due to the excitement surrounding the event. However, over time, the hype around the Arbitrum network began to die down.
As a result, the decline in hype around Arbitrum led to a decline in network activity and transaction volume. Moreover, the brief period when Arbitrum surpassed Ethereum in terms of daily activity was dismissed as a one-off event.
However, Arbitrum has again surpassed Ethereum in terms of daily activity. This recent development suggests that the increased activity on the Arbitrum network may be a pattern rather than a one-off event.
Arbitrum, Ethereum and Optimism Daily Activity Levels from Artemis.
The widespread adoption of the Arbitrum protocol has led to a significant increase in total value (TVL) in smart contracts. According to Artemis’ data, with the exception of Ethereum, the Arbitrum protocol has outperformed most other projects in this regard, with TVL currently reported to be $2.2 billion.
Arbitrum’s TVL according to Artemis.
Although the Arbitrum protocol has a high level of activity, the same cannot be said for its GitHub. Token Terminal data showed a significant drop in the number of active developers on the network in recent months. Furthermore, the number of code commits on Arbitrum’s GitHub has dropped by 51.4% in the last 90 days.
Decline in Arbitrum’s active developers due to Token Terminal.
If this trend continues, Arbitrum could take longer than other protocols to introduce new features and upgrades, potentially leading to a loss of its dominant position in the market.
Despite the positive performance of the protocol, the general sentiment around ARB was negative. Santiment data showed a sharp decline in weighted sentiment in recent days, accompanied by a drop in ARB token velocity. This decline in sentiment and trading frequency caused the price of ARB to crash on the charts.