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Is Arbitrum the Golden Goose of 2023? These Reasons May Convince you that…

The Arbitrum protocol has received a lot of attention recently from non-native decentralised exchange (DEX) platforms. These DEXs have launched on the Arbitrum platform, increasing competition among the platform’s various protocols.

Uniswap, one of the non-native DEXs that launched on Arbitrum, maintained its market share in terms of volume. According to Dune Analytics, Uniswap was one of the non-native DEXs that managed to capture 85.5% of the total volume on the protocol.

The Arbitrum platform’s press time landscape was highly competitive, with a variety of DEXs vying for market share and volume dominance. GMX, a DEX that recently hit the $100 million revenue mark, stood out on the platform.

GMX also formed a number of partnerships with various protocols, which could boost its platform competitiveness even further.

This DEX-generated interest also contributed to the number of active users on the Arbitrum network. According to Dune Analytics data, the number of active users has increased significantly in recent months. The Arbitrum network had 201,618 weekly active users at the time of writing.

In addition to increased activity on the Arbitrum platform, gas usage on the network increased.

The gas used on the Arbitrum network increased from 324,404 Gwei to 445,243 Gwei in December, according to Dune Analytics data. This could indicate increased activity and protocol adoption.

It is worth noting, however, that the growth of stablecoins on the Arbitrum platform has been slowing. According to Santiment data, the network growth of stablecoins such as USDT, DAI, and USDC has slowed significantly over the last week.

Because network growth was slowing, the number of times stablecoins were transferred between new addresses decreased. This could have an effect on the platform’s overall volume and liquidity.

With the launch of multiple non-native DEXs, the Arbitrum protocol has evolved into a competitive landscape. While it is too early to tell how these DEXs will fare in the long run, the increasing competition and gas usage on the platform could be a good sign for Arbitrum’s adoption and development.

 

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