• The Arbitrum protocol recently surpassed Optimism in terms of the number of transactions made on its network.
• Despite growth, there have been concerning signs such as declining active developers and stablecoin network growth.
• Despite these warning signs, it is still possible that the decline is a temporary setback.
Arbitrum Outperforms Optimism in Transactions
The Arbitrum protocol recently outperformed Optimism [OP] in terms of the number of transactions made on its network. According to Messari’s data, on 7 February, the number of transactions made on the protocol was significantly higher than Optimism. L2 Protocol Screener +Nearly all L2s saw increases in usage, TVL, and valuations+@optimismFND sees usage drop following the end of „Optimism Quests“ incentive program+@arbitrum processed nearly 5x the number of transactions that @optimismFND did on Jan 29th pic.twitter.com/qcqKy0HL0r — Messari (@MessariCrypto) February 7, 2023 Read Optimism’s [OP] Price Prediction 2023-2024
User Interest Grows
Users show interest in Arbitrum The spike in transactions could be attributed to the growing number of accumulated users on the protocol. Out 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, showing that more people were using the protocol at press time. Source: Dune Analytics This growth led to an increase in Arbitrum’s revenue. As per Token Terminal, the overall revenue generated by the protocol was $19,900 at press time, after increasing by 61% over the last 30 days..
Declining Active Developers and Stablecoin Network Growth
Despite this positive sign of growth and popularity there were also some concerning signs such as declining active developers which could imply that development may slow down as well as a decrease in stablecoin network growth across Tether [USDT], Dai [DAI], and USD Coin [USDC]. Source: Santiment
Despite these warning signs it is important to note that Arbitrum is still early stages for development so it is possible that this decline is temporary or just a sign for deeper issues needing to be addressed .