Journalist
Posted:
- Arbitrum began to take over Base’s market share.
- A similar pattern was observed in the DeFi space.
Arbitration [ARB] has been one of the most dominant forces in the L2 sector. Due to its increasing dominance, it is starting to eat away at the progress of other L2 chains.
Growth on Arbitrum is increasing
According to recent data, the number of transactions on Arbitrum is growing steadily, taking market share away from Base.
The deployment of a 50 million ARB incentive on the network has proven successful, indicating a maturing ecosystem. This is likely just the beginning of a broader shift.
The momentum shows the impact of the stimulus in strengthening Arbitrum’s position. It marks the early stages of a transformative phase for the platform.
The number of transactions on Arbitrum continues to take market share away from Base.
A bet of 50 million $ARB The boost to the network is starting to pay off in what is clearly a more mature ecosystem.
Probably just the beginning of the rotation. pic.twitter.com/QS943lVYl2
— Emperor Osmo🧪 (@Flowslikeosmo) November 23, 2023
The increasing number of transactions on Arbitrum suggests a growing preference for Arbitrum over Base.
Growth in DeFi
As more users engage with Arbitrum, it could lead to greater network effects, making it more attractive to developers and users alike. The positive response to the stimulus indicates potential further growth and adoption.
However, it is essential to monitor how Base responds to this changing competition.
In the DeFi sector, Arbitrum did very well. The network’s TVL has grown in recent weeks.
In conjunction with this, total DEX volumes on Arbitrum also increased. However, the same could not be said about the Base network. Growth for Base in these areas had slowed dramatically over the same period.
Source: Artemis
Arbitrum’s success in DeFi makes it more popular. More money is being put into it and people are trading more on the decentralized exchange. This is a good sign for Arbitrum.
Realistic or not, here it is The market cap of ARB in BTC terms
On the other hand, Base does less well in these areas. It’s not seeing as much growth and fewer people are using it for decentralized exchanges.
This suggests that Arbitrum is outperforming Base in the DeFi sector for now. The impact could lead to more developers and users choosing Arbitrum over Base due to its increasing success and activity.
