Arbitrum emerging as a DeFi powerhouse, gaining massive adoption: Report
- Arbitrum has gained significant traction in the DeFi sector.
- Integration with GMX_IO plays a critical role in the widespread adoption of Arbitrum.
- User adoption of Arbitrum more than doubles after the featured incentive finding.
According to a recent discovery by Messari, a well-known cryptocurrency data analytics company, Arbitrum, a layer two scale (ETH) network solution, has managed to carve out a profitable niche within the decentralized finance (DeFi) sector.
The report noted that the blockchain scaling solution has gained significant traction and captured the attention of the crypto community despite the potential for farming activity. She added that Arbitrum’s integration with GMX_IO, a leading perpetual contract platform, had played a significant role in its widespread adoption.
What is particularly noteworthy is the sustained growth in user adoption, even after the promised token incentives are completed. Messari revealed that user adoption more than doubled, even after the promised token incentive ended.
Despite the potential farming activity, Arbitrum has found a niche within DeFi, gaining mass adoption for enduring platforms like @GMX_IO. Additionally, user adoption has more than doubled, even after the end of the promised token incentive. pic.twitter.com/ugZOFpaNer
– Messari (@MessariCrypto) May 21, 2023
Notably, Arbitrum is a scalable, layer-two solution for Ethereum that provides fast and low-cost transactions, making it an ideal platform for perpetual platforms, which are derivative contracts that allow users to bet on the price of an underlying asset.
In March, Arbitrum launched its native governance token, ARB. Coin is airdropped for early platform users based on their activity on Arbitrum between a set duration. While the airdrop distributed more than 1 billion units of tokens or 11.6% of the supply, the remaining tokens will be allocated to the Arbitrum team, investors and community rewards.
Recently, angel investor McKenna announced that ARB tokens make up the bulk of his cryptocurrency portfolio, indicating that he is optimistic about the coin. He pointed to its growing popularity among DeFi projects, with securing the largest total value, number of daily transactions, and user base.
Following Arbitrum Emerges as a DeFi Powerhouse, Gaining Massive Adoption: The report first appeared in Coin.