21 May 2023 09:21, UTC
Reading time: ~2 m
According to a recent finding by Messari, a well-known crypto data analytic firm, Arbitrum, the layer two scaling solution for the Ethereum (ETH) network, has managed to carve out a lucrative niche within the decentralized finance (DeFi) sector.
The report noted that the blockchain scaling solution had gained significant traction and captured the crypto community’s attention despite the potential for farming activity. It added that Arbitrum’s integration with GMX_IO, a leading platform for perpetual contracts, has played a crucial role in its mass adoption.
What’s particularly noteworthy is the sustained growth in user adoption, even after the conclusion of the promised token incentives. Messari revealed that user adoption increased over two-fold, even after the promised token incentive ended.
Despite the potential farming activity, @Arbitrum found a niche within DeFi, gaining mass adoption for perpetual platforms such as @GMX_IO.
Additionally, user adoption increased by over two-fold, even after the end of the promised token incentive. pic.twitter.com/ugZOFpaNer
— Messari (@MessariCrypto) May 21, 2023
Notably, Arbitrum is a Layer 2 scaling solution for Ethereum that offers fast, low-cost transactions, making it an ideal platform for perpetual platforms, which are derivatives contracts that allow users to bet on the price of an underlying asset.
In March, Arbitrum launched its native governance token, ARB. The coin was airdropped to early platform users based on their activity on Arbitrum between specific duration. While the airdrop distributed over one billion units of the tokens or 11.6% of the supply, the remaining tokens will be allocated to the Arbitrum team, investors, and community rewards.
Recently, an angel investor Mc Kenna, announced that ARB tokens comprise the largest portion of his crypto portfolio, noting that he is bullish about the coin. He cited its growing popularity among DeFi projects, with the largest total value locked, daily transaction count, and user base.
Read the full article here