With more daily active users than Solana, Arbitrum becomes the biggest beneficiary of Dencun upgrade?

Original title: "Active users on Arbitrum leapfrog Solana despite declining ARB token value"

Original author: Ryan Celaj, DLNews

Original translation: Lucy, BlockBeats

Editor's note:

After the Dencun upgrade, transaction costs on Ethereum's second-layer blockchain have been reduced by up to 99%. Among them, Arbitrum's daily active users and total transaction volume reached a new high on Monday, surpassing Solana. However, the total value of crypto assets on Arbitrum, transaction volume and coin prices are all falling. DLNews reporter Ryan Celaj conducted a data analysis on this. BlockBeats translated the original text as follows:

· On Monday, Arbitrum's daily active users and total transaction volume reached a new high.

· However, Arbitrum’s governance token is down 58% since its all-time high at the start of the year.

· Arbitrum remains the leader in total crypto asset value, daily transaction volume, and daily active users among Ethereum’s second-layer blockchains.

As Ethereum’s transaction fees drop to their lowest levels in years, activity on Arbitrum, a second-layer network built on Ethereum, has reached an all-time high.

On Monday, Arbitrum’s daily active addresses surged to a new all-time high of 856,000, up 150% from the 341,000 recorded at the beginning of May. The surge puts Arbitrum ahead of Solana’s 833,000 daily active users, despite Solana’s recent popularity due to the memecoin trading frenzy.

This happened on March 15th with Ethereum’s Dencun upgrade, which reduced transaction costs on Ethereum’s second-layer blockchain by up to 99%.

Arbitrum’s Daily Active Addresses and Transactions (Growthepie)

In the week before the upgrade, the number of transactions on Arbitrum was just 747,000, a number that jumped to 1.5 million in the week after the upgrade before hitting a high on Monday.

The Arbitrum DAO also recently unveiled its plans to invest 35 million ARB tokens in stable, liquid assets. This has led to more than two dozen companies launching potential products, including heavyweights Franklin Templeton, a trillion-dollar asset manager, and Securitize, the firm that helps BlackRock tokenize assets.

Despite these major developments, the total value of crypto assets on Arbitrum has fallen 22% from its all-time high of $20 billion on April 1 to $15.7 billion. Trading volume on Arbitrum’s decentralized exchange has fallen 82% from a high of $2.2 billion on March 4 to $404 million. Arbitrum’s governance token, ARB, has also not performed well.

ARB Daily Token Price

ARB hit an all-time high on January 11, reaching $2.26, and came close again on March 7, reaching $2.17. However, the token has fallen 58% since January and is currently trading at $0.94. Meanwhile, Ethereum has risen about 10% over the same period.

One reason for ARB’s price lag could be the massive token unlock conducted by Offchain Labs, the development team behind Arbitrum, and its investors. On March 15, about $1.2 billion worth of ARB tokens were unlocked and distributed to these groups, and the tokens were locked up for a year.

Despite this, Arbitrum remains the preferred second-layer blockchain for bridging Ethereum overall. According to data as of April 28, just over 1.7 million ether has been transferred to Arbitrum, while Arbitrum’s 14 largest second-layer competitors have only seen about 1.5 million ether bridged to their blockchains.

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