• Arbitrum generated higher revenue compared to other L2 solutions without offering token incentives, reaching $14.4 million.
• NFT trading volume surged on Arbitrum, with the upcoming launch of the Pudgy Penguins collection set to increase user numbers even further.
• The amount of ETH saved by Arbitrum users saw a surge over the past month, indicating lower costs compared to other layer-2 solutions. Stablecoin network growth on Arbitrum, however, has decreased gradually.
Arbitrum is a layer-2 solution that is quickly gaining traction as a viable solution for decentralized finance activity. The platform has seen increasing success in terms of both revenue and user numbers, with its unique approach of offering no token incentives to users providing a great advantage over other layer-2 solutions.
The most impressive aspect of Arbitrum is its ability to generate high revenue without the need to offer token incentives. According to data provided by the Token Terminal, Arbitrum generated $14.4 million in revenue without any token incentives, compared to Polygon’s $5.6 million with $599 million of token incentives and Optimism’s $7.4 million with $70 million of token incentives. This lack of overhead for Arbitrum could have a positive impact on the future of the layer 2 solutions.
Furthermore, the user base of Arbitrum is also growing rapidly. This is thanks to the upcoming launch of the popular Pudgy Penguins NFT collection, which is set to become a multichain collection. This would also add to the already increasing Arbitrum NFT trading volume.
Lastly, the amount of ETH saved by Arbitrum users observed a surge over the last month. This is likely due to the lower costs associated with using the Arbitrum network compared to other layer-2 solutions. The only downside to Arbitrum is that its network growth of stablecoins has decreased gradually, as per the data by Santiment. Although this does not affect the overall success of the platform, it is still worth noting.
Overall, Arbitrum is quickly becoming a viable solution for decentralized finance activity, offering a unique approach to layer-2 solutions without token incentives. With the growing revenue, user numbers, and NFT trading volume, Arbitrum could very well become one of the leading layer-2 solutions in the near future.