spot_imgspot_imgspot_img

The Number of Transactions in Arbitrum is Decreasing: What is the Reason?

  • The daily transactions on Arbitrum have been showing a continuous downward trend since reaching an all-time high of 2.73 million on March 23rd.
  • While the daily transactions on Arbitrum have been declining, there has been a steady increase in daily transactions completed on Optimism since early May.
  • The DEX volume reached its peak on April 19th with 1.2 billion transactions. However, as of July 7th, this number has fallen below 300 million.

Since its peak on March 23rd, daily transactions on Arbitrum have declined by 73%. The volume of Arbitrum transactions on DEXs has also seen a decrease of 78%.

Declining Daily Transactions on Arbitrum Network

arbitrum-arb

The cumulative unique address count on Arbitrum’s (ARB) Layer 2 (L2) platform recently surpassed the 9 million mark, but on-chain data indicates a decrease in daily transactions on the optimistic rollup network.

According to ArbiScan data, the total address count on Arbitrum was recorded as 9.67 million. According to the same data provider, the network has been experiencing a decline in daily transactions since the end of the first quarter. The daily transactions on Arbitrum have been showing a continuous downward trend since reaching an all-time high of 2.73 million on March 23rd. This amount has consistently decreased by over 50% throughout the second quarter.

As of July 7th, the total number of daily transactions completed on Arbitrum was 742,667, marking a 73% decrease from the peak on March 23rd.

arbitrum-daily-transactions-chart

While daily transactions on Arbitrum have been declining, there has been a steady increase in daily transactions completed on Optimism since early May. According to the data provider, the 7-day moving average of daily transactions has increased by over 200%. As of July 6th, there were 484,710 transactions completed on Optimism.

transaction-count-on-optimistic-rollups

Gains and Losses on Arbitrum

As additional context regarding the decline in daily transaction count on Arbitrum, an evaluation of the total volume of Arbitrum transactions completed through decentralized exchanges (DEXs) in the past few months showed a decline of 78% since mid-April.

According to the data, on-chain DEX volume reached its peak with 1.2 billion transactions on April 19th. However, as of July 7th, this number has fallen below 300 million. Despite the continuous decline in DEX activity, the total value locked (TVL) on Arbitrum has increased since the beginning of June. It should be noted that the TVL of L2 experienced a 20% decrease between May 6th and June 16th for a short period.

The Arbitrum TVL, which was $2.15 billion, increased by 8% after dropping to $1.99 billion on June 16th.

arbitrum-tvl-and-dex-volumes

In terms of network fees and revenue, the daily fees paid for using Arbitrum have decreased by 44% in the past month. Interestingly, during the same period, the project’s revenue increased by 19%. While network fees have increased by 12% in the past year, revenue has decreased by almost 30%.

arbitrum-fees-and-revenue

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

Merlin Chain’s Mainnet Success: Over $1.97 Billion TVL and Strong Bitcoin Ordinals Ecosystem Involvement

Merlin Chain emerges as a formidable player in the Bitcoin second-layer ecosystem, boasting over $1.97 billion in TVL shortly after its mainnet launch, signaling strong market confidence and adoption.

Block’s Bitcoin Strategy Yields $207M in Gains, Spurs 90% Profit Surge

Block, Inc. reports a spectacular $207 million gain from its Bitcoin investments last quarter, reflecting a 90% increase in Bitcoin gross profit and propelling its stock to soar in after-hours trading.

Kraken Challenges SEC: A Standoff Over Crypto Regulation and Political Free Speech

Kraken's legal battle with the SEC highlights the ongoing tension between crypto exchanges and regulatory authorities, underscoring critical questions about the future of digital assets in the United States.

Starknet STRK Token Price Soars as StarkWare Adjusts Unlock Schedule Amid Community Feedback

Following StarkWare's response to community backlash by revising the STRK token unlock schedule, Starknet sees a price surge, highlighting the impact of tokenomics on crypto valuations.

Reddit Announces IPO with a Crypto Twist: Bitcoin, Ethereum, and MATIC Holdings Revealed

In a significant move towards becoming a publicly traded company, Reddit reveals its cryptocurrency holdings, including Bitcoin and Ethereum, in its latest SEC filing, marking a notable fusion of social media and blockchain technology.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Merritt Vale
Merritt Valehttps://en.coinotag.com/
Merritt Vale is a 24-year-old woman who has a strong affinity for the Dogecoin community and has a particular love for the altcoin Shiba. With a passion for understanding the latest trends and developments in the cryptocurrency industry, Merritt provides fresh perspectives and valuable insights to her readers.
spot_imgspot_imgspot_imgspot_img

Merlin Chain’s Mainnet Success: Over $1.97 Billion TVL and Strong Bitcoin Ordinals Ecosystem Involvement

Merlin Chain emerges as a formidable player in the Bitcoin second-layer ecosystem, boasting over $1.97 billion in TVL shortly after its mainnet launch, signaling strong market confidence and adoption.

Block’s Bitcoin Strategy Yields $207M in Gains, Spurs 90% Profit Surge

Block, Inc. reports a spectacular $207 million gain from its Bitcoin investments last quarter, reflecting a 90% increase in Bitcoin gross profit and propelling its stock to soar in after-hours trading.

Kraken Challenges SEC: A Standoff Over Crypto Regulation and Political Free Speech

Kraken's legal battle with the SEC highlights the ongoing tension between crypto exchanges and regulatory authorities, underscoring critical questions about the future of digital assets in the United States.