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Author:
[email protected]
Data source:
Arbitrum One & Arbitrum Nova Dashboard
In March 2023, we conducted an in-depth exploration of the gaming sector of Arbitrum One. Over the past year, we have seen the Total Value Locked (TVL) of Arbitrum double, and the market capitalization of its native token $ARB increase by 70%. Now, as $ARB celebrates its one-year anniversary, it is an excellent time to reassess the development of the Arbitrum ecosystem.
What is Arbitrum?
Arbitrum is a Layer 2 solution that includes Arbitrum One and Arbitrum Nova, which aim to achieve scalability for Ethereum by increasing transaction throughput and reducing transaction fees.
Arbitrum One
Arbitrum One was officially launched on August 31, 2021, and has made a significant impact in the Layer 2 space with its innovative Optimistic Rollup technology. It seamlessly integrates with Ethereum Layer 1 through the Arbitrum Rollup protocol and uses Nitro technology to develop efficient and Ethereum-level secure dApps. According to Footprint Analytics, Arbitrum One dominates the Rollup solution market, accounting for about 47% of the TVL market share.
Arbitrum Nova
Arbitrum Nova was launched on August 9, 2022, as a high-performance option within the Arbitrum ecosystem, focusing on applications that require high speed and cost efficiency. Unlike the trustless framework of Arbitrum One, Nova uses the AnyTrust protocol in the form of AnyTrust Optimium, which does not put transaction data on-chain. Arbitrum One aims to provide a scalable and cost-effective platform for general use cases to deploy Ethereum-compatible smart contracts, while Arbitrum Nova serves applications that require high transaction throughput without the need for complete decentralization.
The Team behind Arbitrum
Arbitrum is developed by Offchain Labs, a company founded in Princeton and supported by venture capital, with over five years of experience in blockchain research and development. The co-founder and chief scientist of Offchain Labs, Ed Felten, is an outstanding computer science professor and has served as the Deputy Chief Technology Officer of the White House. The Offchain Labs team’s expertise in computer science, blockchain technology, and cryptography has laid a solid foundation for the development of Arbitrum.
Insights into Arbitrum One’s Data
With the Nitro upgrade, Arbitrum has successfully achieved full compatibility with the Ethereum Virtual Machine (EVM), making the migration of smart contracts from Ethereum to Layer 2 extremely simple with minimal adjustments. In addition, Arbitrum was the first to achieve decentralization in the EVM Rollup technology’s first phase. Its robust codebase has paved the way for multiple Ethereum Layer 2 solutions such as Kinto, Parallel, HYCHAIN, and Frame.
This article will delve into the data performance of Arbitrum One and explore the factors behind its leadership in the Ethereum Layer 2 space.
Total Value Locked (TVL)
Total Value Locked (TVL) is a key indicator of the adoption level of blockchain on a large scale. According to data from the Arbitrum One Dashboard by Footprint Analytics, despite the overall bearish market sentiment, Arbitrum One’s TVL has achieved astonishing growth in the past year, jumping from $1.5 billion to $4 billion, doubling its value.
Data from March 23 shows that DEX, lending, and re-collateralization are the main areas driving the growth of Arbitrum One’s TVL, with GMX, Pendle, and Uniswap V3 emerging as leading protocols. It is worth mentioning that according to the latest TVL rankings, Pendle has achieved a 44.4% TVL growth in the past 30 days.
On-chain Addresses
As of March 23, Arbitrum One has completed a total of 37.49 million transactions in the past 30 days and attracted 2.95 million active addresses. Among these active addresses, 42.8% are new addresses interacting with Arbitrum for the first time.
Transaction Fees
With the completion of Ethereum’s London upgrade, the average transaction fees on Arbitrum One have significantly decreased. Specifically, the fees dropped from 0.00015 ETH per transaction on March 13 to 0.0000028 ETH per transaction on March 23, a decrease of 98.1%. This significant cost reduction has played a crucial role in lowering Ethereum network fees, thereby promoting its wider application and acceptance.
$ARB: Price, Trading Volume, Market Capitalization
$ARB was launched in March 2023 and has experienced fluctuations in price over the past year, showing an upward trend in the first quarter of 2024. However, on March 16, Arbitrum announced the unlocking of 1.1 billion $ARB tokens, accounting for 87.2% of the circulating supply, causing the price to drop from $2.18 on March 8 to a low of $1.62 on March 19. At the same time, the trading volume of $ARB closely followed the price trend.
As of March 23, the market capitalization of $ARB reached $4.3 billion. Due to the token unlocking event mentioned above, the circulating supply of $ARB has increased, resulting in a significant growth in market capitalization.
In summary, Arbitrum One’s dominance in the Ethereum Layer 2 space is due to its excellent EVM compatibility, advanced decentralized technology, profound knowledge in computer science and blockchain, and extremely low transaction fees. These factors together make Arbitrum One a strong competitor that stands out in the fierce competition.
More Data Insights
In addition to the profound insights discussed earlier, Footprint Analytics has expanded its services, including wallet profile analysis, detailed reference data, and in-depth analysis tools for individual tokens, providing comprehensive and accurate data support for research in the blockchain field.
Wallet Profile Analysis
This feature provides users with a comprehensive wallet tracking tool that can analyze transaction details, gas fees, and protocol interactions of any specific address. This tool is particularly valuable for users who wish to closely monitor wallet activities or track important trends in the ecosystem, often referred to as “whale tracking” in the industry. Through this tool, users can easily stay updated on the latest wallet activity, grasp market dynamics, and provide strong support for investment decisions.
Reference Data
This module provides core foundational data about Arbitrum One and Arbitrum Nova, which serves as the cornerstone for in-depth research analysis.
Furthermore, the individual token analysis tool allows for detailed data analysis of individual tokens on Arbitrum. It provides comprehensive information ranging from real-time price fluctuations, supply indicators, market capitalization, trading volume, holder distribution, and DEX transactions, offering powerful data support for users to analyze any token comprehensively. These comprehensive and in-depth insights are essential for investors and developers to accurately assess token performance, capture market trends, and discover more potential investment and development opportunities within the Arbitrum ecosystem.
In-depth analysis reveals that the success of Arbitrum can be attributed to its technological innovation, market positioning, and outstanding contributions to the blockchain ecosystem, which together have established its leadership position in the Ethereum Layer 2 space. The profound insights revealed by Footprint Analytics present us with a platform that not only flourishes but also sets a benchmark in driving innovation and mass adoption in the decentralized world.
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This article is for industry research and communication purposes only and does not constitute investment advice. The market carries risks, and investment should be cautious.
Footprint Analytics is a blockchain data solution provider. With cutting-edge artificial intelligence technology, Footprint Analytics offers the first no-code data analysis platform and unified data API in the crypto field, enabling users to quickly retrieve NFT, Game, and wallet address fund flow tracking data from over 30 blockchain ecosystems.
Product Highlights:
Data API for developers
Footprint Growth Analytics (FGA) for GameFi projects
Batch download for large-scale data downloading
All datasets provided by Footprint
Follow us on Twitter (Footprint_Data) for more product updates.
Tags:
Ethereum
Blockchain
Note: The translation represents the author’s viewpoint and does not constitute investment advice.
Original article link: [https://www.bitpush.news/articles/6538028](https://www.bitpush.news/articles/6538028)
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