Author: Emperor Osmo, Crypto KOL
Compiled by: Felix, PANews
At first, many people thought that the explosive growth of Arbitrum caused by the airdrop effect would be fleeting. But the data does not lie, and the following 5 charts can prove that Arbitrum’s rapid development will continue.
2023 is a year of rapid development for L2, with Optimism giving rise to the rise of Ethereum scalability. In addition, the launch of the ARB token further promoted the development of the L2 market. Since then, a series of expansion solutions have emerged.
Is this rapid development a flash in the pan, or is it an injection of liquidity in Arbitrum as many data analysts predict?
This article compares the state of development of the Arbitrum ecosystem to that of Ethereum and Optimism.
Daily Trading Volume
Arbitrum’s daily trading volume continues to trend upward.
The average daily transaction volume was 159,000 at the beginning of the year, and now it averages 1.2 million transactions per day, which is higher than Ethereum, which processes 935,000 transactions per day.
Wherever there is a protocol, there is transaction volume. Arbitrum creates an ever-evolving cycle, where more transactions promote protocol development, protocol development attracts more users, and more users promote more transactions. There is no doubt that many of the top protocols in the Ethereum ecosystem are still top protocols in the Arbitrum ecosystem.
Daily active addresses
This influx of activity has inspired many of the head builders in the space to flock to Arbitrum and build.
The number of daily active addresses has increased by 470% year-to-date and is expected to permanently surpass Ethereum.
Stablecoin Growth
In DeFi, liquidity is king, and the growth of stablecoins is an important indicator of ecosystem growth. Interestingly, Arbitrum and Ethereum have been negatively correlated since the beginning of the year.
Ethereum: down 15% Arbitrum: up 105% Optimism: up 5% Protocol Deployment
Over the past year, the number of protocols deployed on the Arbitrum ecosystem has grown exponentially, with no signs of slowing down. Year-to-date, the number of protocols deployed on the Arbitrum ecosystem has grown by 156%, and appears to be accelerating. This is about 10 times that of Optimism.
Retention rate
After the airdrop event, retention is a key metric to understand whether the protocol is still being used. Data shows that even after using Arbitrum for 8 weeks, Arbitrum's user retention rate is over 30%. In contrast, Optimism's retention rate is 20% in the same time frame.
According to the data, even after the most anticipated airdrop of the year, the Arbitrum internal ecosystem seems to be accelerating. Many major players can be seen using this liquidity to develop their ecosystems, invest in their products and reward loyal users.
