Arbitrum surpassed Optimism in the number of transactions. Despite the growth, the decline in active developers and the growth of the stablecoin network raised questions about sustainability.
The Arbitrum protocol recently outperformed Optimism [OP] in terms of the number of transactions on its network. According to Messari’s data, the number of transactions on the protocol was significantly higher than Optimism’s on Feb. 7.
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+Almost all L2s saw increases in usage, TVL and ratings
+@optimismFND sees usage drop after end of “Optimism Quests” incentive program.
+@arbitrum processed nearly 5x the number of transactions that @optimismFND did on Jan 29 pic.twitter.com/qcqKy0HL0r
— Messari (@MessariCrypto) February 7, 2023
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Users show interest in Arbitrum
The spike in transactions can be attributed to the growing number of amassed users of the protocol. Of these users, 74.1% made more than one transaction, while 20.9% were one-time users.
Despite the average number of transactions per address being lower, the number of active addresses on Arbitrum increased, demonstrating that more people were using the protocol at the time of printing.
This growth led to an increase in Arbitrum’s turnover. According to Token Terminal, the total revenue generated by the protocol was $19,900 at the time of going to press, after an increase of 61% in the past 30 days. While this is a positive sign of growth and popularity, there were also some worrying signs.
One of those signs was the decline in active developers, which implied that development of the protocol could slow down.
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The stablecoin corner
In addition, the network growth of stablecoins on Arbitrum declined, as did stablecoins such as Tether [USDT]Day [DAI]and USD currency [USDC] all posted disturbing numbers, according to data from Santiment. This could further herald an imminent decline in the overall activity of the protocol.
Despite these warning signs, it was important to note that the Arbitrum protocol was still in the early stages of development. It is possible that the decline in active developers and the growth of the stablecoin network is a temporary setback. However, it was also possible that the decline was a sign of deeper issues that needed to be addressed.
This post Arbitrum Passes Optimism in Key Measure: Can Growth Continue?
was published first on https://ambcrypto.com/arbitrum-passes-optimism-in-key-metric-can-its-growth-continue/