Arbitrum sees steady growth as airdrop speculation leads to increased earnings

cointelegraph.com:

Post Ethereum (ETH) merge, layer-2 blockchains have been catching the eyes of users and investors alike. Research firm Delphi Digital has been tracking Arbitrum since August and recently shared its analysis in a monthly market report.

According to data, user behavior and historical analysis show multiple trends of rapid growth in transactions, total value locked (TVL) and daily active users at Arbitrum-based platforms. 

When projects give away more token incentives than the revenue they incur, they have negative earnings. Token incentives that are higher than fees a protocol receives are typically a sign that the growth is not sustainable and more than likely wash trading.

Over the last 30 days, Arbitrum has earned $1 million in fees, a 134.41% increase. The increase in fees also increased the 30-day revenue for the Arbitrum protocol by 46.91%. Such growth puts Arbitrum as eighth among all DeFi protocols with $240,000 in earnings.

In order for a protocol to receive revenue and earnings, they need daily active users. The daily active users transacting and interacting with Arbitrum is how fees increase. Over the past 30 days, Arbitrum witnessed user growth double to more than 70,000 but more recently user count is back to under 30,000.

Optimism is another blockchain protocol that is similar to Arbitrum but doesn’t have a token. When Optimism released the OP token, users that were active on the blockchain received airdrops.

Due to the similar launch structure of Optimism, some investors are speculating that Arbitrum will also do an airdrop. This speculation might be why users are trading so frequently on the Arbitrum blockchain. Overwhelming, new Arbitrum users are bridging from Optimism. Optimism to Arbitrum accounts for