Arbitrum Ecosystem Before First Incentive

The Arbitrum ecosystem is in the final steps of pumping incentives into the market. All developments have been implemented as planned and the only thing left is to wait for the results to see if the original goal is achieved. out or not. In this article, let’s update the Arbitrum ecosystem before the first Incentive wave to see if there’s anything interesting.

To better understand this article, people can refer to some of the articles below:

• What is Layer 2? Complete Guide to Layer 2 Solutions
• What is Arbitrum (ARB)? Arbitrum Cryptocurrency Overview
• Prepare Urgently Before Arbitrum’s First Incentive Pumping

Overview of On-chain Indicators on Arbitrum

Similar to the on-chain index on the Arbitrum network in the most recently updated article Arbitrum Ecosystem Grows Amid Surrounding DRAMA, the number of transactions on the Arbitrum network has not shown positive growth. What we can see most easily is that after continuously decreasing for many months from the beginning of the year, in October the number of transactions no longer decreased but also did not increase.

From this factor, we can vaguely realize that the number of users on Arbitrum has reached the threshold of real users because at this stage users have almost no motivation to do Airdrop. However, there is also a factor that helps the Arbitrum network not continue to decline: the Arbitrum Odyssey event.

Hopefully, Incentive will soon be deployed in the near future, it can help make the Arbitrum ecosystem more bustling and fun. Currently, transaction fees on Arbitrum are extremely cheap.

In the past month, Arbitrum’s TVL has also stopped decreasing and is going sideways. In the context of a very bad macro market, the Crypto market does not have any new wind, any outstanding narrative or it does not cause positive impacts like the approved Ethereum ETF Future. The TVL of the entire DeFi industry is understandably flat.

In the TOP 10 platforms with the largest TVL, in the past month only Arbitrum and Tron performed better than Ethereum while all the remaining platforms such as BNB Chain, Polygon, Optimism, Base, Avalanche,… all performed poorly. than Ethereum.

There are a few notable parameters such as:

• Although there are only about 100K Active Users, the amount of Volume created by Arbitrum is $212M, almost the same number as BNB Chain with $228M accompanied by more than 1M Active Users, 10 times more than Arbitrum.
• The amount of Stablecoins on Arbitrum remains high at around $1.6B which is equal to the TVL of the entire ecosystem.
• The number of projects on Arbitrum also skyrocketed with 461 projects preparing to surpass the Polygon ecosystem and approach BNB Chain. However, the rapid increase in the number of projects does not mean that the quality of projects also increases rapidly.

Unlike the number of transactions that have shown signs of decreasing sharply since the beginning of the year, according to Token Terminal, the number of regular users on Arbitrum has not shown signs of decreasing too much. The highest number of regular users per month on the Arbitrum network is about 2.8M people, now this number is about more than 2M people, equivalent to a decrease of less than 30%.

Arbitrum Ecosystem Before First Incentive

Celebrating 1 year of Offchain Labs acquiring Prysmatic Labs

October 13 is the 1 year anniversary that Offchain Labs acquired Prysmatic Labs – the team behind the leading Consensus Client on Ethereum. Over the past year Offchain Labs and Prysmatic Labs have together achieved a number of achievements as follows:

• Construction and development of the Stylus upgrade continues to be optimized and adds many new features to Arbitrum.
• Prysm’s product quality has improved significantly since joining Offchain Labs.
• Prysmatic Labs is one of the groups leading contributions to EIP4844.
• Prysm versions 4.0.5, 4.0.7, 4.0.8 feature major quality improvements for Ethereum validators.
• Block verification latency was reduced by 20% and even reduced by a significant 100% in one case.

The proposals have mostly been adopted

Immediately after the information about the Incentive package worth 50M ARB was deployed, hundreds of projects sent their proposals to the discussion page with a total request amount of more than 100M ARB. In just about a week, these proposals were officially posted to Snapshot for users to officially vote on.

Up to now, many proposals have been approved, including:

Everyone can track the voting status of project proposals here. In addition, everyone can absolutely participate in making profits with ARB in the near future. You can refer to this article on strategies and preparations.

It can be seen that everything is ready, the only thing left is to wait. There will be many opportunities, so everyone should prepare carefully.

Arbitrum started “playing around” with Optimism

In the context of Superchain growing strongly, led by Base, there are many moves by the community to criticize Arbitrum, notably criticizing Arbitrum for not being in the spirit of Blockchain being open source.

Arbitrum’s development team also responded strongly. First, Ed Felten writes about why he is loyal to Optimistic Rollup in the context that the whole market believes that ZK Rollup is the future of Layer 2, read more in the article “Why We Are Optimistic About Optimistic” – Ed Felten. Next, the article explains why Arbitrum does not open source, read more in the article The Story of Layer 2 License Between Arbitrum and Optimism. Obviously, the conflict between Arbitrum and Optimism is becoming more and more obvious.

The Arbitrum Odyssey incident went unnoticed

Compared to the first time Arbitrum Odyssey was held, there were 438K participants, but the number of people has decreased seriously when it was restarted recently:

• Pulsar in the Distance: 145K participants.
• The Blueberry Nebula: 67K participants.
• Signs of Life: 8.8K people participated.

Although there are discussions about using ARB that users have not yet claimed to reward Arbitrum Odyssey participants, the number of participants is quite small. This consequence may come from a similar program on Optimism that took place right after the Optimism Airdrop with 18 different Quests but later participants had to suffer very heavy losses.

Some small changes to the Arbitrum ecosystem

The Arbitrum ecosystem had an eventful September with major updates, but there are some noteworthy points as follows:

• GMX V2 is not creating breakthrough changes. TVL of version V2 is still growing but not too large.
• Radiant Wars has officially begun with the Radpies leading the way. Radpie is a project within Magpie’s ecosystem focusing on Wars, some prominent projects include Magpie with Wombat Wars, Penpie with Pendle Wars, Radpie with Radiant and the upcoming Campie with Camelot.
• Pendle Finance continues to launch new products related to Real World Assets and Fixed Yield.
• Dopex has officially launched CLAMM. CLAMM is half of the V2 upgrade that makes it possible for liquidity providers to earn additional profits beyond the transaction fees collected from the protocol. Dopex V2 is a great expectation of the development team with the ambition to bring Options into all protocols, helping users access Options without needing to understand how it works.
• Treasure DAO and its ecosystem continue to be active as The Beacon recently officially announced its next development roadmap with many interesting points. Read more here.
• Jones DAO, a Yield Strategy platform on Arbitrum, has also had positive growth in price recently when they officially announced the acquisition of JONES in the market with the profits earned.

General Assessment of the Arbitrum Ecosystem

Arbitrum and its ecosystem continued to experience a relatively boring September. However, I firmly believe that this is the time for Arbitrum to prepare more infrastructure, especially the Stylus update, to meet user needs when the Incentive event takes place. After the upcoming Incentive event, it is likely that Arbitrum will become the center for Perp DEX in the near future because many Perp DEX projects receive many Incentives.

In the past month, we have not witnessed the birth of new Orbit Chains.

Summary

Arbitrum continues to be the hope of the Crypto market in the current context. Hopefully through this article everyone can grasp information about the Arbitrum ecosystem before the first Incentive.