Arbitrum’s User Base Is Fastest Growing Among Leading Blockchains: Bernstein

It is the only blockchain where liquidity locked is growing, the report said.

AccessTimeIconFeb 20, 2023 at 11:22 a.m. UTC
Updated Feb 21, 2023 at 3:44 p.m. UTC

Arbitrum has the fastest-growing user base among leading blockchains, Bernstein said in a research report Monday, noting that project tokens trading on the network have also been among this year’s best performers.

Transaction growth has been rapid, reaching almost 50% of daily Ethereum transactions in January, Bernstein said. Daily transactions and revenue are four times higher than six months ago. Developer activity is also robust, it said.

“Arbitrum is seeing aggressive growth in users/active users/transactions/revenue, led by wider adoption and the scale up of DeFi and gaming applications on the chain,” analysts Gautam Chhugani and Manas Agrawal wrote, referring to decentralized finance, an umbrella term for a variety of financial applications carried out on a blockchain.

A growing app ecosystem is powering adoption of the blockchain, the report said, with leading DeFi and gaming applications driving growth. These include crypto derivatives exchange GMX, which has around $400 million in daily volumes and $500,000 in daily revenue.

Other trading platforms emerging on Arbitrum include Gains Network, Vela, Camelot, Rage Trade, Dopex, Lyra and Buffer Finance, the note said. Lending and asset management apps Radiant Capital and Factor are also gaining traction, while games built on the TreasureDAO ecosystem are scaling well.

New wallets and wallet activation trends and transaction momentum are very strong. New user acquisition has doubled in six months, and daily active users are three times higher over the same period, the report said. The broker notes that Arbitrum is the only chain where liquidity locked is growing.


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Will Canny is CoinDesk's finance reporter.

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