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Arbitrum Usage Spikes to New Highs, Here's What Happened

Alex Grace

Alex Grace

February 21, 2023

5 min read

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In Q1, 2023, Arbitrum, a major Ethereum-based L2 scaling solution, set a number of records in transactional activity. Arbitrum has never been so close to surpassing Ethereum in daily transactions count.

Arbitrum metrics are on fire in February, 2023: Key takeaways

In recent weeks, Ethereum scaler Arbitrum made headlines by an unprecedented upsurge in transaction volume and network activity.

  • In mid-February, Aribtrum’s DEX GMX surpassed Ethereum, a largest smart contracts platform, by daily fees;
  • Bernstein Research named Arbitrum the fastest growing blockchain by user base;
  • In 2023, Arbitrum’s USD-denominated total value locked (TVL) added over 50%;
  • Arbitrum continues to expand its dominance on L2’s market: as of Feb.21, 2023, it controls more than 53% of all TVL on Ethereum’s L2s.
  • Arbitrum’s number of daily transactions added a whopping 800% since Jan.1: it inches closer to surpassing Ethereum.

As such, in 2023, Arbitrum has all chances to evolve into a go-to blockchain for dApps of all types. Highlighted developer-friendliness, high speed, trivial fees and seamless compatibility with EVM are four pillars of Arbitrum’s success

TL;DR: Second-layer protocol Arbitrum is trending as it allows devs to use all the advantages of Ethereum saving on fees and time. That’s why all its metrics are rocketing: transaction count, network TVL, share of all L2s’ TVL, and so on.

Arbitrum-based DEXes see their tokens at price ATHs as Arbitrum becomes the fastest-growing platform. To start using Arbitrum RPC nodes for free, set up your GetBlock endpoint now: https://account.getblock.io/sign-in .

Arbitrum becomes fastest-growing blockchain, TVL is back to May, 2022 levels

While the recovery from Crypto Winter has just started, the Arbitrum platform looks like a flagship protocol of the first phase of the new rally. In terms of total value locked (TVL), i.e. aggregated value of assets in all protocols, Arbitrum is back to the levels unseen since Terra (LUNA) ecosystem collapse.

Arbitrum total value locked chart

Image by L2Beat

As of February 21, 2023, Arbitrum amassed over $3,33 bln in TVL. For the last time, this metric was so high on April 29, 2022. The upsurge of Arbitrum’s transactional activity is even more impressive: in the last five weeks, it increased from 1,85 transactions per second (daily average) to almost 11 TPS.

Arbitrum network activity chart

Image by L2Beat

As displayed on the chart above, Arbitrum is getting close to surpassing Ethereum in transactional activity.

While its competitors are on the eve of major technology breakthroughs (Optimism introduced OP Stack mechanism, zkSync proceeded to alpha testnet), Arbitrum scores a crucial partnership: largest U.S. cryptocurrency ecosystem Coinbase integrated the network on Feb.17.

As such, Arbitrum is in the spotlight for developers from all over the globe. Reputable research firm Bernstein recently called it a blockchain with the fastest-growing user-base. As a result, Arbitrum is now responsible for 53% of Ethereum’s L2 ecosystem; its closest competitor Optimism only controls 30%.

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Rise and rise of DEXes on Arbitrum

Arbitrum prioritizes developer experience for all Web3 creators building dApps on this L2. On Feb.7 it introduced Stylus, a new-gen programming update. With Stylus, Arbitrum developers can leave Solidity sandbox and start writing code in their preferred language.

Steven Goldfeder, co-founder of Arbitrum’s Offchain Labs, stressed that such a release would be a ‘platform shift’ for Web3 developers:

EVM+ on Arbitrum will be a game changer, opening up the EVM to millions of new developers and industries. For the first time ever, Rust, C, and C++ devs will be able to access the biggest DeFi ecosystem in crypto, and I can’t wait to see what they build. #OnlyOnArbitrum

Also, Arbitrum remains one of the dominant L2 scalers with no governance token. Interested in lucrative ‘retro-airdrops’, DEX users are moving to Arbitrum-based platforms from Ethereum and Polygon.

As such, on Feb.13-14, Arbitrum’s version of GMX, high-performance derivatives exchange, surpassed Ethereum in daily fees collected. GMX on Arbitrum made $5,7 mln in fees in 24 hours while the entire Ethereum network logged $4,7 million in network fees.

Another Arbitrum-based DEX Gains Network sees its token listed by #1 crypto exchange Binance; GNS price tripled in last month and jumped to new all-time high.

Arbitrum RPC nodes by GetBlock: Your premium gateway to largest Ethereum’s L2

To sum up, the right moment to become a part of Arbitrum disruption has come. It allows you to leverage the decentralization and security of Ethereum, but way cheaper and faster. GetBlock, a blockchain RPC nodes provider, was among the first Web3 infrastructure providers to add Arbitrum nodes in 2022.

Now GetBlock offers Arbitrum RPC endpoints in free and paid packages. Both JSON-RPC and WebSockets endpoints are available for GetBlock clients. Developers can sign up to GetBlock with no KYC via MetaMask and start using Arbitrum.

Also, developers can set up dedicated Arbitrum RPC endpoints in two clicks via GetBlock Configurator. Supercharging your dApp with Arbitrum has never been easier: https://account.getblock.io/sign-in .

Alex Grace

Alex Grace

February 21, 2023

5 min read