According to fresh Dune Analytics statistics, the number of Aave [AAVE] users on Arbitrum has increased significantly. Arbitrum was being adopted by a growing number of users, showing that L2 use was rapidly expanding.
Arbitrum is a significant layer 2 solution that has contributed to the sector’s development. Its TVL has increased dramatically in recent weeks, and it now stands at 1.08 billion at the time of writing, up 1.24% in the past 24 hours.
Despite the increase in TVL, Arbitrum’s activity and TPS were unable to rise. According to L2beats statistics, the latter fell by 26.78%.
Despite a brief drop in Arbitrum’s TPS, the number of transactions on the protocol has increased dramatically since September. Even though there was some fluctuation in the number of transactions, the aggregate number of transactions remained positive.
According to Arbiscan, the number of unique users on the L2 protocol climbed from 1.7 million to 12.16 million in the previous month.
Aave’s expanding prominence on Arbitrum has a detrimental influence on Aave’s position on the Ethereum [ETH] network.
The volume for Aave on Ethereum plummeted dramatically, as seen in the figure below. Large addresses have also lost interest in Aave. This was evidenced by the network’s falling top addresses carrying AAVE.
Aave’s network growth has also slowed, indicating that the amount of new users transferring the currency for the first time on Ethereum’s network has reduced.
It remains to be seen if the expansion of Aave on the Arbitrum network heralds a bigger transition to L2 networks.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.