As anticipation for an airdrop builds, the network activity of Arbitrum, a layer-2 rollup for Ethereum, has spiked.
Delphi Digital reports earlier this week that transactions on Ethereum have risen 550% since the launch of the Nitro network upgrade last August. It now accounts for 62% of the weekly transactions on Ethereum. Only 9% of Ethereum activity was handled by Arbitrum before the surge.
The Reason Behind The Surge
There has also been a spike in unique wallet addresses, topping out at over 1.66 million for the first time on Monday; note that multiple addresses owned by individuals are counted in that figure.
“Much of the activity is likely from speculators trying to boost their on-chain activity in the hopes of receiving a larger airdrop,” said Delphi.
The arbitrum platform hosts a wide range of DeFi’s decentralized applications, including Curve Finance, Uniswap, and the Aave lending protocol.
Arbitrum is now responsible for 62% of all #Ethereum transactions
ETH is scaling, buckle up 🚀 pic.twitter.com/ALFgPCPPyO
— Crypto-Gucci.eth ᵍᵐ🦇🔊 (@CryptoGucci) November 2, 2022
The Potential to Launch an Airdrop
Despite not having launched its own native token yet, Steven Goldfeder, co-founder of Offchain Labs, has hinted that an airdrop may follow in the footsteps of Optimism.
The Nitro upgrade is partly responsible for Arbitrum’s growth, as it reduced fees, increased capacity, and improved development, Goldfeder spoke to Blockworks.
“At the same time, the Arbitrum ecosystem has been steadily growing, and this increase in adoption is largely a reflection of this continued organic growth,” Goldfeder said.
Meanwhile, a while ago, Mycelium, a blockchain infrastructure provider based in Australia, launched perpetual swaps using Arbitrum under the guidance of Arthur Hayes, a former BitMEX executive.
“When Mycelium first deployed derivative smart contracts in September 2021, Arbitrum was a natural choice. Their growth since then is a success story that has defied the bear market odds,” said Mycelium co-founder Patrick McNab to Blockworks.
According to McNab, Ethereum protocols have grown rapidly over the past two years through network effects, as well as protocols expanding synergistically.
“That is now playing out on layer-2s like Arbitrum,” he said.