You probably have had cautiously curated food that lacks a crucial ingredient despite its remarkable texture and smell. Meanwhile, adding that single element can elevate your entire meal. That is what the L2 leader, Arbitrum, endured at the moment.
Arbitrum offered quicker transactional throughputs and short finality time than other layer2s. Still, the project lacked a critical item.
What’s Missing
The layer2 scaling network Arbitrum witnessed successful campaigns that welcomed massive user retention and growth. While publishing this post, the network exhibited a 51.72% marketplace share, with more than 80 decentralized applications.
Meanwhile, the Arbitrum Nitro launch triggered volume surges in the DEX, following almost-nil gas fees. The third quarter saw cumulative trading volume in three leading decentralized exchanges surpassing $2 billion.
Assessing the total value locked shows Arbitrum held more than $2.40 billion in TVL, creating a buzz when measured against other players. In that context. Arbitrum had a relatively flat TVL for the 3rd quarter (The Tie analysis).
The analytic platform stated that tracking Arbitrum involves assessing user growth and ecosystem development as the platform lacks a token. QoQ (quarter-over-quarter) daily transactions increased by 62.7%, regardless of unfavorable macro conditions.
Nevertheless, Arbitrum was yet to introduce a native token to incentivize total value locked. Indeed, supporting the platform to retain the discussed growth. Besides that, the platform registered some attractive milestones, introducing Odyssey and Nitro.
Generally, Layer2 applications have drawn attention and real-world usage – Arbitrum’s GMX. Meanwhile, the current speculations about Arbitrum launching its token might propel organic growth to new heights.
Will it Deliver?
Meanwhile, market players have high expectations from Arbitrum. The question lingers, can the project satisfy investor expectations? Only time can reveal this case, though crypto enthusiasts remained bullish for the network, with investments witnessing some impacts.
For example, Uniswap Labs tweeted about hitting 78.78% market share ATH by Uniswap v3 on Arbitrum. Meanwhile, ETH liquid staking platform, Lido, revealed the expansion of its stETH (staked Ethereum) to the ETH layer2 protocol Arbitrum Bridge.
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