- Arbitrum’s volumes have soared over the past week.
- Revenue collected by the network rose even as overall activity fell.
Arbitration [ARB]has managed to get back on its feet despite the uncertainty of recent months. Notably, L2 solution volume has increased over the past week.
Volume peaks
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 volume close to Camelot despite significantly lower liquidity.
But it wasn’t just Ramses Exchange that did well. AMBCrypto found that according to Artemis data, Arbitrum’s total DEX volumes were high, which also increased L2’s TVL (Total Value Locked).
The increase Arbitrum’s TVL indicated that more assets were being stored and used within the network at the time of writing.
As TVL grows, it will become an attractive environment for more DeFi projects and users. This in turn can lead to a reinforcing cycle of network growth and development.
Source: Artemis
Additionally, Arbitrum revenues were also up 34.8% over the past month. However, the number of daily active users of the protocol had fallen by 33.4%.
Realistic or not, here is ARB’s market cap in BTC terms
The increase in revenue was a positive sign for Arbitrum, indicating that the protocol was generating more revenue. This could attract more users and investors, fueling the growth of the platform. It could also be a signal that users found value in the protocol’s services.
However, the decline in the number of daily active users was a worrying signal. It is important that a blockchain network has an engaged user base for long-term success. Only time will tell if the decline is an anomaly, or if it is a signal of something more worrying.
Source: Token terminal
