• Arbitrum’s DEX volume surpassed that of competitors like Optimism and Polygon.
• GMX, the largest decentralized exchange for perpetuals, shifted most of its activity from Avalanche [AVAX] to Arbitrum.
• Key metrics suggest Arbitrum is in good shape with a 2-month high earlier in the week in daily active users, 6-month high of almost $100k in transaction fees, and steady growth in TVL.
Arbitrum Surpasses DeFi Competitors
Arbitrum has been making waves in the DeFi space as its DEX volume surpassed that of competitors such as Optimism and Polygon. According to data from DeFiLlama, 65% of the $175.47 million daily trading volume on SushiSwap took place on @arbitrum. Additionally, GMX, the largest decentralized exchange for perpetuals shifted most of its activity from Avalanche [AVAX] to Arbitrum which resulted in it forming a lion’s share of the total value locked (TVL) on Arbitrum at press time.
Key Metrics Show Positive Momentum
A look at key performance indicators (KPIs) can explain why DeFi protocols are finding it lucrative to join Arbitrum’s network activity. As per data from Token Terminal, the daily active users on the layer-2 solution showed good recovery and hit a 2-month high earlier this week. Furthermore, transaction fees for validators jumped to a 6-month high of almost $100k while revenue which goes to both Arbitrum investors and itself grew steadily over recent days.
Sentiment Echoed by Data Providers
The sentiment surrounding Arbitrums performance was echoed by data providers such as DefiLlama who highlighted that chain’s increasing share of daily trading volume recorded by Sushiswap [SUSHI], one of the largest decentralized exchanges [DEX] in the market. Additionally, DefiLlama also noted that when looking at total volume over seven days Arbitrums was nearly 50% WoW growth compared Optimisms 11%. In fact even Ethereum’s sidechain Polygon [MATIC] couldn’t keep up with Arbitrums 24 hour trading volumes either.
Challenge Thrown Out To Competitors
The growth seen by Arbirtrum throws out a challenge to competitors who may need to find ways to increase their market share or else they risk getting left behind as more developers flock towards this platform due to its impressive KPI figures as well as positive sentiment around it’s uptrending performance across multiple metrics.
Arbitrums success should be an inspiration for other platforms looking for ways to improve their own user numbers and associated metrics such as trading volumes and TVLs if they want remain competitive within an ever growing DFI arena.