A new report by blockchain analytics firm Nansen has found that the airdrop conducted by Arbitrum has led to an all-time high in both the number of users and transactions on the network. This development comes despite significant bearish sentiment in the broader markets.
The airdrop, which took place in March 2023, saw over 2 million addresses claim $50 worth of ARB tokens. This influx of new users helped to drive a surge in activity on the network, with daily transaction volume reaching an all-time high of over 1 million in April 2023.
The report also found that the airdrop had a positive impact on the long-term adoption of the network. Even after the airdrop was completed, network usage has remained relatively high, with daily transaction volume averaging around 500,000 in May 2023.
This is in contrast to other layer-2 networks, such as Optimism, which have seen stagnant or even falling usage over the same period. Notably, Arbitrum even surpassed the usage seen on its base layer, Ethereum, on some days.
The report concludes that the airdrop was a “significant success” for Arbitrum, and that it has helped to “position the network as a leading layer-2 scaling solution for Ethereum.”
Here are some of the key findings of the report:
- The airdrop led to an all-time high in the number of users on the Arbitrum network.
- The airdrop also led to an all-time high in the number of transactions on the Arbitrum network.
- The airdrop had a positive impact on the long-term adoption of the Arbitrum network.
- The Arbitrum network is now a leading layer-2 scaling solution for Ethereum.
The report’s findings are a positive sign for the future of Arbitrum. The network has already shown that it can attract users and generate activity, even in a bearish market. With continued development and growth, Arbitrum has the potential to become a major player in the Ethereum ecosystem.
According to a new report by blockchain analytics firm Nansen, the airdrop conducted by Arbitrum has led to an all-time high in both the number of users and transactions on the network.
This development comes despite significant bearish sentiment in the broader markets.
And while the surge in usage at the time of the airdrop was expected, the report also pointed out that network usage has remained relatively high even after the airdrop was completed.
The increased usage was notable when compared to other networks like the layer-2 network Optimism, which saw stagnant and even falling usage over the same period.
Notably, Arbitrum even surpassed the usage seen on its base layer, Ethereum, on some days.
Besides driving more sustained usage, the airdrop also sparked a rise in transaction fees on Arbitrum, which are paid in ETH.
The report noted that gas spending has been in an upward trend for much of this year, which was strengthened by the airdrop.
In terms of the USD value of transactions processed on the network, the Nansen report observed a similar pattern: a sharp rise followed almost immediately by a decline post-airdrop.
Still, what can be seen is that transactions, on average, have maintained a higher USD value than before the airdrop, the report stated.
Arbitrum is a popular Ethereum layer-2 network often used to save on fees for instance when interacting with decentralized finance (DeFi) solutions.
Other popular layer-2 networks include Ethereum’s Optimism and Starkware, and Bitcoin’s Lightning Network.