- Arbitrum saw growth in its network on several fronts.
- Starknet rewarded long-time users by announcing token rewards.
The tier 2 sector is ripe for competition as new entrants continue to enter the space. However, some L2 solutions were able to perform better than others.
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Competition on the rise
Arbitration for example[ARB] outperformed its peers over the past month and saw improved sentiment over the past week. This led to an increase in liquidity.
It received a significant net deposit of $115.67 million last week. As a result, Arbitrum surpassed both Optimism and zkSync in terms of inflow. This showed Arbitrum’s strong performance and growing market interest.
Over the past week, differences in gas consumption between different market sectors have become visible on Arbitrum. Derivatives recorded the highest gas consumption at $155.75k.
In second place, infrastructure was responsible for $145.41k in gas consumption, while decentralized exchanges (DEX) came in third with $136.00k in gas consumption. These figures revealed sector-specific differences in activity and transaction costs on the Arbitrum network during this period.
Which market sectors @arbitrum used the most gas in the past week?
1⃣ Derivatives, $155.75k
2⃣ Infrastructure, $145.41k
3⃣ Exchanges (DEX), $136.00k pic.twitter.com/Xx6kfSybAF— Tokenterminal (@tokenterminal) October 30, 2023
Looking at DeFi
Due to these factors, Arbitrum remained dominant in the DeFi sector. According to Artemis data, Arbitrum outperformed most L2 solutions in terms of TVL.
Furthermore, the protocol recorded higher DEX volume than other L2 networks. Networks such as Optimism, zkSync era, and Starknet underperformed during this period. However, things can change quickly.
Source: Artemis
Starknet makes his moves
Recently, the Starknet Foundation announced that it would share 50 million STRK tokens with early members of the Starknet community. These tokens serve as a reward for those who have contributed to the growth of the Starknet ecosystem.
The main focus of the rewards program would be on individual contributors, those who actively shape the growth of the Starknet ecosystem. It aims to support not only programmers, but also those involved in community support, knowledge sharing and making the ecosystem more vibrant.
In its initial phase, the program would recognize individuals in various categories, including those who contribute significantly to technical discussions. It would also reward contributors recognized by key ecosystem projects and event organizers. Depending on feedback, a second batch may be considered in the future.
This development could help Starknet gain a much-needed edge. The allocation of tokens to early community members may inspire new addresses to join Starknet in hopes of another token airdrop. The hype surrounding Starknet and its tokens could further fuel the network’s growth.
Earlier this year, Arbitrum launched its long-awaited airdrop of its ARB tokens. Due to the hype surrounding this airdrop, activity around Arbitrum skyrocketed.
Although activity dropped slightly after the addresses got their tokens, Arbitrum managed to get back on its feet quickly afterwards.
Active users on the network
It remains to be seen whether Starknet will follow the same roadmap. While the future of Stakrnet is uncertain, at the time of writing, activity on the network was seen to be skyrocketing.
Artemis’ data showed that Starknet had surpassed Optimism, Arbitrum and the Base network in terms of daily active addresses. It only came in second place compared to zkSync Era, which had the highest number of active users at the time of writing.
However, the protocol has still not managed to surpass Arbitrum in terms of the number of transactions on the network.
Realistic or not, here is ARB’s market cap in BTC terms
Source: Santiment
It remains to be seen whether Starknet will be able to compete with other players in the sector in the future. Another interesting development is the performance of the STRK token. At the time of writing, the STRK token had not yet been published on any specific exchange.
As for the other tokens, it was seen that both OP and ARB witnessed a rise in terms of price and market capitalization in the past few days.
Source: Santiment