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Ethereum layer-2 scaling solution Arbitrum has hit a major milestone within its network. According to data from crypto analytics service provider IntoTheBlock (ITB), Arbitrum’s daily transactions soared to two million as of May 8.
As ITB noted, since March, Arbitrum has consistently hit an average of one million transactions per day. This is significant as it proves the network is more user-friendly than its peers. The Arbitrum transaction surge has been a major buildup over time. Per the one-year chart shared, Arbitrum’s transaction growth has remained relatively flat, around 100,000 to 500,000, from September through October 2023.
This Arbitrum transaction milestone comes at a time when the protocol announced its Stylus MultiVM protocol has achieved a new update. Dubbed the Giga-update, the upgrade is designed to reduce transaction fees even further, by 2 to 4x cheaper. The Stylus update also comes with better tooling, improved safety and contract size compression for enhanced functionality.
Arbitrum occupies a unique position in the Ethereum L2 ecosystem. With a rich record of price fluctuations and bullish fundamentals, the protocol has always left users wishing for more. In mid-March, as many as 1.6 billion ARB tokens flooded the market. Amid the bearish sentiment at the time, the tokens still showcased resilience.
At the moment, Arbitrum is changing hands for $1.02, up marginally by 0.17%. According to top market analyst Ali Martinez, the TD Sequential indicator currently presents a buy signal on the Arbitrum weekly chart. Per the analyst, this indicator teases a one-to-four-candlestick rebound for ARB in the near term.
It remains unclear how ARB will react to the bouts of bullish updates within its ecosystem. One thing is clear though: user count is growing. The network is more efficient, and the demand for ARB is poised to grow in the long term. This trend positions ARB for a mega rally soon.
Dan Burgin
U.Today Editorial Team
