Arbitrum Outperforms Optimism: Transactions Surge Despite Developer Decline

• 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 — 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

Warning Signs

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 .

Conclusion While there are signs pointing towards potential sustainability issues with Arbitrum they need to be further analyzed and evaluated before coming to any conclusions about its future success or failure .