Arbitrum (ARB), a Layer-2 scaling solution, is emerging as a top contender among its competitors, experiencing a surge in daily active addresses and transactions.
Recent data from Token Terminal reveals that Arbitrum has surpassed other Layer 2 solutions on the Ethereum network in terms of inflows. With $10.2 billion in inflows, Arbitrum leads the pack, followed by OP Mainnet with $4.8 billion and Blast with $2.1 billion.
Daily active addresses on Arbitrum have grown from 250,000 to 400,000 in the past week, with daily transactions reaching 1.5 million. However, the DeFi sector on Layer 2 solutions seems to be struggling, as DEX volumes have dropped from 2.2 billion to 500 million, and Total Value Locked has decreased from $3.30 billion to $2.65 billion since March.
There are concerns about network development, as a decline in code commits and core developer contributions could slow down Arbitrum’s long-term growth. Nevertheless, Arbitrum’s features like optimistic roll-up offer users low fees and scalability within the Ethereum network.
Analysts are optimistic about Arbitrum’s future, with ARB trading at $1.12 and showing a 5.88% increase in the past day. The market capitalization has also risen by 5.9% to $2.9 billion, with a trading volume increase of over 39% to $298 million. Analysts predict that Arbitrum could surpass its previous high of $2.4 and reach a target price of $4 in the upcoming altcoin market rally.