Arbitrum Transaction Count Rises to 62% of Ethereum Transactions

Ethereum scaling solution Arbitrum has seen surging activity since deploying a network upgrade in August. Is an airdrop close?

article-image

Source: Shutterstock

share

Arbitrum, a layer-2 rollup for Ethereum, has seen its network activity spike to new heights as anticipation mounts for an airdrop.

The buzz has boosted the total value of digital assets locked on the network (TVL) by more than 13% over the past month. Arbitrum’s TVL is $1.05 billion as of press time, eclipsing Ethereum rival Solana and even direct competitor Optimism.

Not to mention, transactions have shot up more than 550% since the launch of its Nitro network upgrade in August, now representing 62% as many weekly transactions as the Ethereum blockchain, research firm Delphi Digital reported earlier this week. Before the surge, Arbitrum handled just 9% of Ethereum activity.

That has coincided with a spike in unique wallet addresses, which topped out at over 1.66 million for the first time on Monday. It should be noted that figure counts multiple addresses owned by individuals.

“Much of the activity is likely from speculators trying to boost their on-chain activity in the hopes of receiving a larger airdrop,” Delphi said.

Arbitrum hosts many of DeFi’s popular decentralized applications including exchange liquidity pool Curve Finance, decentralized exchange Uniswap and lending protocol Aave.

Arbitrum activity chart | Source: Delphi Digital

The protocol is yet to launch its own native token, but Steven Goldfeder, co-founder of Arbitrum developer Offchain Labs, has cryptically hinted that an airdrop could eventually occur, following in Optimism’s footsteps.

Arbitrum’s growth can be partly attributed the Nitro upgrade, which introduced lower fees, increased capacity and smoother development, Goldfeder told Blockworks in an email.

“At the same time, the Arbitrum ecosystem has been steadily growing, and this increase in adoption is largely a reflection of this continued organic growth,” Goldfeder said.

Arbitrum scales Ethereum to defy bear market

Australia-based blockchain infrastructure provider Mycelium debuted its perpetual swaps on Arbitrum in August under the guidance of former BitMEX executive Arthur Hayes.

“When Mycelium first deployed derivative smart contracts in September 2021, Arbitrum was a natural choice,” Mycelium co-founder Patrick McNab told Blockworks. “Their growth since then is a success story that has defied the bear market odds.”

McNab added the network effects of access to liquidity, as well as protocols expanding synergistically, have led to large growth and innovation in Ethereum protocols over the past two years. “That is now playing out on layer-2s like Arbitrum.”

Offchain Labs has raised some $147 million in funding from the likes of Lightspeed Ventures, Coinbase Ventures, Pantera Capital and billionaire Mark Cuban, among others, data from Pitchbook shows. Offchain’s post-money valuation is more than $1.2 billion.

Article and headline were updated at 3:40 am, Nov. 3, to clarify transaction count statistic.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million