Arbitrum flips BSC: Where will the L2 head next?

Title: Arbitrum’s Volume Soars Despite Uncertainty: What This Means for the Protocol

Arbitrum’s Volume Rises

Arbitrum [ARB], despite facing uncertainty over the last few months, has managed to get back on its feet. Markedly, the L2 solution’s volume rose over the last week.

Volume Spikes

Recent statistics analyzed by AMBCrypto revealed a significant shift in favor of Arbitrum. The protocol crossed $2.66 billion in trading volume, surpassing Binance Smart Chain [BSC]. Notably, RamsesExchange, a decentralized exchange (DEX) operating on Arbitrum, generated a volume close to Camelot, despite having significantly lower liquidity. As per Artemis’ data, the overall DEX volumes of Arbitrum were high, due to which the L2’s TVL also increased. The rise in Arbitrum’s TVL indicated that more assets were being stored and utilized within the network at press time. As TVL grows, it becomes an attractive environment for more DeFi projects and users, leading to a reinforcing cycle of network growth and development.

Revenue and User Activity

Additionally, the revenue generated on Arbitrum had also grown by 34.8% over the last month. However, the number of daily active users on the protocol had fallen by 33.4%. The increase in revenue was a positive sign for Arbitrum, indicating that the protocol was generating more income. However, the decrease in daily active users was a concerning signal. It’s important for a blockchain network to have an engaged user base for its long-term success.

Realistic or Not, Here’s ARB’s Market Cap in BTC’s Terms

The data on Arbitrum’s volume and revenue points towards a mixed bag of success and concerns for the protocol. The increase in volume and revenue suggests growing interest and utilization of the platform. However, the dip in daily active users raises questions about the long-term sustainability of the network’s growth. Only time will tell whether these trends are anomalies or signals of potential challenges for Arbitrum.

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By Team