Arbitrum positively impacted by network 'Gains,' details inside
TL;DR Gains Network saw a surge in demand on 27 February and captured a large majority of Open Interest. This increased the activity on the Arbitrum protocol, causing its transactions to surpass Ethereum’s daily transactions. However, after this peak, the number of transactions declined and is currently at 833,736. Despite this decline, the overall revenue for the network increased by 124.1%. This could be attributed to the low fees offered by the protocol and the increasing number of active users.
Gains DEX dominated in terms of Open Interest.
Gains Network [GNS], a prominent DEX on the Arbitrum protocol, captured massive amounts of forex demand on 27 February. This helped the protocol have a large majority in terms of Open Interest.
gTrade by @GainsNetwork_io has become the first crypto project to capture sustained forex demand, making up the majority of open interest. pic.twitter.com/YTQNNmImrM — Delphi Digital (@Delphi_Digital) February 27, 2023
Realistic or not, here’s GMX’s market cap in BTC’s terms
According to Dapp Radar, the volume on the Gains network increased by 39% over the last 24 hours as a result of the development. At press time, the volume on the protocol increased to $722,000. Coupled with that, the number of unique active wallets surged by 18.98% in the same period.
This high activity on the protocol added to the growing popularity of the Arbitrum network.
Another reason for Arbitrum’s increasing popularity was the decreasing transaction fees for the users. Arbitrum provided a cheaper alternative to users, which made them choose this layer 2 solution over other protocols. This development also helped Arbitrum users make savings.
According to Dune Analytics’ data, Arbitrum users saved up to 94.5% of ETH by making transactions on the protocol.
Due to the low fees offered by Arbitrum, the overall number of active addresses on the network saw an uptick. Over the past few days, the number of active users on the network increased from 273,230 to 441,260, according to Dune Analytics.
This helped Arbitrum’s number of transactions increase, which surpassed Ethereum’s daily transactions on 22 February. However, after Arbitrum surpassed that threshold, the number of transactions on the network plunged from 1.093 million to 833,736 at press time.
How much are 1,10,100 GNS worth today?
A decline in Arbitrum transactions
Despite this decline in transactions, the overall revenue of Arbitrum increased by a staggering 124.1%. At press time, the overall revenue generated by the protocol was $337,616, as per Token Terminal.
The funds generated by Arbitrum could advance the protocols developments further. The number of active developers on the network increased by 3.9% over the last month. This indicated that new updates and upgrades on the Arbitrum network could be on their way, which could attract more users to the network.