Is Arbitrum Increasing Transactions a Sign of Token Launch?

Arbitrum's decentralised exchange trading volume has eclipsed

Binance Smart Chain, reaching a high of 690K daily transactions.

As of the exponential expansion in its transaction volume, Arbitrum has recently experienced a significant increase in its user base. Recent reports of increased TVL and DeFi activity have reignited interest in the Ethereum layer 2 solution and boosted the likelihood that the network will launch a coin.

The Expanding Ecology of Arbitrum

According to data retrieved from the blockchain, on February 19, the number of daily transactions on Ethereum's L2 network Arbitrum hit a new record high of 690,000. Despite this, it still has a worse track record than its rival, the Optimist L2 network. Beginning in January, Optimism started rewarding its users with an NFT Quest programme, which caused the platform's daily transaction volume to soar to an all-time high of more than 800,000.

L2Beat data, however, shows that the volume of transactions on the Arbitrum networks Nova and One surged by 170% and 69%, respectively, over the previous week. The number of network unique addresses has also significantly increased during the last several months.

Unique Addresses at Random

According to a post by Nansen, the L2 network has seen unheard-of investment levels and the highest-ever percentage of transactions of $10,000 or more. Also, there was a significant increase as a result of user rumours regarding a network airdrop.

There have been consistent rumours that the native token of the Arbitrum project will soon be made available for purchase since the project's inception. Also, it's possible that individuals already connected to the network will receive the token via "Airdrop" after it launches. By giving away free tokens or coins to a large audience, airdrops are frequently employed by cryptocurrency projects as a form of advertising.

Increased DeFi Activities

Dune Analytics' statistics show that the increase in transactions is benefiting the amount of money the Arbitrum network is able to make. The total value of assets (TVL) locked on Arbitrum as of the time of writing, according to data from L2Beat, has risen to $3.27 billion. According to data provided by DeFillama, the TVL is currently somewhere around $1.8 billion. Throughout the month of February, Arbitrum had a steady infusion of stablecoins. According to data from Wu Blockchain, USDC inflow jumped by 30%, while USDT and DAI inflow increased by 43% and 65%, respectively. At the time of writing, the price of DAI, USDT, and USDC were all fixed at $1.

At this point, it is still unknown when the Arbitrum token will be released and how it will be distributed. Yet, investors continue to make purchases on the platform in the hope that once the token is released, they would be in a better position.