Journalist
Posted:
- Development activities on the Arbitrum network increased.
- New addresses continue to overlook the L2 in favor of competition from ARB.
For several months, Arbitrums [ARB] has not been the most widely used Layer Two (L2) scaling solution. The reason is that the likes of Optimism [OP] and Coinbase’s [COIN] Base is now considered preferred options by market participants.
How many Worth 1,10,100 ARBs today?
Arbitrum tries to compete in ‘style’
Although Arbitrum is lagging behind, it is not resting on its belts with regard to developments on the network. In line with this promise, Offchain Labs has done just that issued the public Testnet for Arbitrum’s Stylus for use by developers.
The Arbitrum Stylus allows developers to build applications on the Nitro chain while reducing gas costs and enabling Ethereum Virtual Machine [EVM] contracts for faster execution on the blockchain.
While Offchain Labs admitted to making Testnet available to public GitHub repositories, it noted:
“The availability of the live Testnet for Arbitrum Stylus that allows developers to build smart contracts, in addition to previously offered EVM languages.”
This move resembles the strategic move Base made before the launch of Mainnet in the first week of August. Base has been through a lot in that time adoption when users found a way to bridge the network.
This also led to the increase in the value of assets bridged on the network and its increasing adoption. But what has been the development’s impact on ARB since then?
Waiting for the outcome while developers take action
According to Santiment, Arbitrum’s network growth briefly spiked to 3,152 on August 31. However, the walk did not last as he had fallen to 1,111 at the time of writing. Network Growth measures the number of new addresses interacting with a project.
When it increases, it means an increase in traction. However, a decline in ARB’s network growth implies that the project’s adoption or use of the token by new entrants was far from impressive.
Therefore, Arbitrum is unlikely to follow in Base’s footsteps in terms of improving traction on the L2. However, OffLabs’ statement about allowing public GitHub repositories seemed factual.
This claim was due to the state of development activity. At the time of writing, Arbitrum’s development activity had risen to 5.46 – a level it hasn’t reached in months.
Realistic or not, here it is ARB’s market cap in terms of OP
So the press time state of the metric suggests that developers were polishing the Arbitrum network.
Source: Sentiment
While it may be too early to conclude that Arbtirum may not match the intensity of Optimism or Base, OffLab clarified that it was up to Arbitrum One and Nova DAO to decide how far Stylus development would go.