Understanding the Surge in Active Accounts and On-Chain Transactions in Arbitrum

04/13/2023 02:41 • Digital Disruptors • 124 views

According to reports, Dune Analytics data shows that the total number of active accounts in the Ethereum Layer 2 network, Arbitrum, has exceeded 4 million, reaching 4.003 million so far. The current total number of network account creations is 4.801 million. In addition, the total value of Arbitrum’s on chain locking reached $5.523 billion, with a total of over 186 million on chain transactions.

The total number of active accounts in Arbitrum has exceeded 4 million

The world of decentralized finance (DeFi) is rapidly expanding with more people joining the blockchain network to enjoy lower transaction fees and faster processing times. Ethereum has long been the backbone of DeFi, but the influx of users has put considerable strain on its network, leading to the development of Ethereum Layer 2 networks like Arbitrum. Recent data from Dune Analytics shows that the total number of active accounts in the Arbitrum network has exceeded 4 million, while the value of on-chain locking has hit $5.523 billion.

What is Arbitrum?

Arbitrum is a Layer 2 solution rolled out on the Ethereum network in August 2021. It uses Optimistic Rollups to transfer data to Ethereum in a trust-free manner. This network aims to improve Ethereum’s scalability and boost transaction speed while also reducing the transaction fees charged.

The Surge in Active Accounts in Arbitrum

According to the data available on Dune Analytics, the active accounts on the Arbitrum network have grown exponentially, having reached 4.003 million so far. It is a clear indication that the network’s popularity is significantly increasing, offering a more reliable and efficient solution for users.

On-chain Transaction Value

The increase in active accounts is not the only metric showing that Arbitrum is having a moment. On-chain locking is another critical success factor for Arbitrum. Dune Analytics shows that the total value of Arbitrum’s on-chain locking has reached $5.523 billion.

Benefits of Using the Arbitrum Network

The Arbitrum network offers several advantages to DeFi users. First, unlike Ethereum, it can handle large volumes of transactions without losing speed or efficiency. Secondly, it offers more cost-effective transaction fees, opening up DeFi opportunities to regular people on low budgets. Furthermore, its trust-free structure ensures that smart contracts are secure and transparent.

Conclusion

Arbitrum’s recent impressive growth is a clear reflection of its potential to disrupt the DeFi space positively. Ethereum’s limitations in transaction speed, transaction fees, and scalability are some of the reasons why users are choosing to use this Layer 2 solution. The increasing number of active accounts and the value of on-chain transactions show the potential of the network while providing superior value to users.

FAQs

Q: How does Arbitrum differ from the traditional Ethereum network?
A: Arbitrum is a Layer 2 solution built on the Ethereum network, which provides users with lower transaction fees, faster processing times, and higher scalability.
Q: How does Arbitrum ensure the security of smart contracts?
A: Arbitrum uses Optimistic Rollups to circulate data in a trust-free manner, ensuring that smart contracts are secure and transparent.
Q: Is it safe to use the Arbitrum network?
A: Yes, it is safe to use the Arbitrum network as it follows a trust-free protocol, allowing users to enjoy secure and transparent transactions.

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