Non-native DEXs have been launched on the Arbitrum protocol, increasing the competition between different protocols on the platform. Gas consumption on the Arbitrum platform is increasing. However, the growth of the Stablecoin network is slowing down
In recent months, the Arbitrum protocol has attracted a lot of attention from non-native decentralized exchange platforms (DEX). These DEXs were launched on the Arbitrum platform, increasing the competition between different protocols on the platform.
A growth in competition
One of the non-native DEXs launched on Arbitrum, Uniswap continued to dominate the market share in terms of volume. Based on Dune Analytics information, Uniswap was one of the non-native DEXs to capture 85.5% of the total volume on the protocol.
A rise of 192.23xx on the agenda as UNI hits ETH market cap?
Source: Dune analysis
The press time landscape of the Arbitrum platform has been highly competitive, with a variety of DEXs vying for market share and volume dominance. One DEX that stood out on the platform was GMX, which recently hit $100 million in revenue.
GMX also entered into a number of collaborations with various protocolswhich could further increase its competitiveness on the platform.
How many GMXs can you get for $1?
congratulations for @GMX_IO for over $100 million in total costs! 🥳🥳🎉
Hopefully, $GMX will continue to shine in the future and have huge success 🎉#GMX $GMX #arbitrum pic.twitter.com/82JEOp8JxC
— Arbitrum Space (💙,🧡) (@Arbitrum_Space) January 7, 2023
This interest generated by DEXs also contributed to the number of active users on the Arbitrum network. The number of active users has grown significantly in recent months according to data from Dune Analytics. At the time of writing, there were 201,618 weekly active users on the Arbitrum network.
Source: Dune analysis
In addition to the growing activity on the Arbitrum platform, there was also an increase in gas consumption on the network.
According to data from Dune Analytics, gas usage on the Arbitrum network increased from 324,404 Gwei to 445,243 Gwei in December. This may be a sign of increased activity and approval of the protocol.
Source: Dune analysis
The stablecoin corner
However, it is worth noting that the growth of stablecoins on the Arbitrum platform is slowing down. According to data from Santiment, network growth of stablecoins such as USDT, DAI, and USDC has slowed significantly over the past week.
The declining network growth implied that the number of times the stablecoins were transferred between new addresses decreased. This could potentially impact the overall volume and liquidity on the platform.
Source: Sentiment
Overall, the Arbitrum protocol has become a competitive landscape with the launch of multiple non-native DEXs. While it’s still early days to see how these DEXs will perform in the long run, growing competition and gas consumption on the platform could be a positive sign for Arbitrum’s adoption and development.
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