Journalist
Posted:
- Nearly 73% of the total earnings accrued to Ethereum holders.
- ARB was still witnessing considerable demand from the market.
One of the biggest success stories to have come out of last year’s bear market was the phenomenal growth of layer-2 (L2) blockchains.
Arbitrum [ARB], arguably a barometer of the industry’s performance, mopped revenues of over $72 million over the past year, according to AMBCrypto’s scrutiny of Token Terminal data.
This marked a nearly fourfold increase.
Source: Token Terminal
However, about $53 million, or 73% of the total earnings were accrued to Ethereum [ETH] holders, raising questions about the incentives offered to native ARB holders.
ARB holders at a disadvantage
Built on top of Ethereum, L2 blockchains process transactions off the main chain, thereby helping the latter to scale.
As part of the final settlement, the transactions are batched together and sent over to the main chain along with security proofs.
It is this very process that takes up a substantial amount of revenue earned on L2s.
A closer examination of the aforementioned data showed that Ethereum validators consistently received more than 70% of the daily transaction fees paid on Arbitrum.
While the upcoming Dencun upgrade was expected to reduce L1 storage costs drastically, the tokenomics leaves very little for ARB holders to celebrate.
Note that ARB doesn’t accrue any value from Arbitrum’s on-chain activity, and functions just as a governance token.
These factors may disincentivize ARB ownership in the long run.
Whales show interest in ARB
As of this writing, ARB was exchanging hands at $1.86, growing by 9% in the last month, according to CoinMarketCap.
This was significantly lower than gains made by other L2s like Optimism [OP] and Polygon [MATIC]. However, wealthy investors exhibited an affinity for L2 tokens in recent months.
Realistic or not, here’s ARB’s market cap in BTC’s terms
As per AMBCrypto’s examination of Santiment’s data, addresses holding between 1,000–10 million coins have swelled since December.
On a broader scale, around 140,000 new ARB holders were added in the aforementioned period, implying considerable demand from the market.
Source: Santiment
Journalist
Posted:
- Nearly 73% of the total earnings accrued to Ethereum holders.
- ARB was still witnessing considerable demand from the market.
One of the biggest success stories to have come out of last year’s bear market was the phenomenal growth of layer-2 (L2) blockchains.
Arbitrum [ARB], arguably a barometer of the industry’s performance, mopped revenues of over $72 million over the past year, according to AMBCrypto’s scrutiny of Token Terminal data.
This marked a nearly fourfold increase.
Source: Token Terminal
However, about $53 million, or 73% of the total earnings were accrued to Ethereum [ETH] holders, raising questions about the incentives offered to native ARB holders.
ARB holders at a disadvantage
Built on top of Ethereum, L2 blockchains process transactions off the main chain, thereby helping the latter to scale.
As part of the final settlement, the transactions are batched together and sent over to the main chain along with security proofs.
It is this very process that takes up a substantial amount of revenue earned on L2s.
A closer examination of the aforementioned data showed that Ethereum validators consistently received more than 70% of the daily transaction fees paid on Arbitrum.
While the upcoming Dencun upgrade was expected to reduce L1 storage costs drastically, the tokenomics leaves very little for ARB holders to celebrate.
Note that ARB doesn’t accrue any value from Arbitrum’s on-chain activity, and functions just as a governance token.
These factors may disincentivize ARB ownership in the long run.
Whales show interest in ARB
As of this writing, ARB was exchanging hands at $1.86, growing by 9% in the last month, according to CoinMarketCap.
This was significantly lower than gains made by other L2s like Optimism [OP] and Polygon [MATIC]. However, wealthy investors exhibited an affinity for L2 tokens in recent months.
Realistic or not, here’s ARB’s market cap in BTC’s terms
As per AMBCrypto’s examination of Santiment’s data, addresses holding between 1,000–10 million coins have swelled since December.
On a broader scale, around 140,000 new ARB holders were added in the aforementioned period, implying considerable demand from the market.
Source: Santiment
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me? https://accounts.binance.com/bn/register?ref=UM6SMJM3
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Your article helped me a lot, is there any more related content? Thanks! https://accounts.binance.com/uk-UA/register?ref=W0BCQMF1
how to get generic clomiphene how can i get generic clomid price clomid without dr prescription where buy clomiphene pill can i buy cheap clomiphene generic clomiphene price cost of cheap clomiphene without a prescription
More posts like this would force the blogosphere more useful.
Palatable blog you be undergoing here.. It’s severely to assign elevated calibre script like yours these days. I justifiably appreciate individuals like you! Go through care!!
azithromycin 250mg canada – order floxin 400mg flagyl 200mg us
buy semaglutide 14mg – cyproheptadine 4mg cost cyproheptadine online order
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
motilium 10mg cheap – flexeril 15mg sale cyclobenzaprine without prescription
buy inderal generic – purchase plavix buy methotrexate 10mg sale
purchase amoxicillin pill – ipratropium 100 mcg brand ipratropium buy online
zithromax 500mg generic – azithromycin 500mg usa generic bystolic
purchase coumadin pills – https://coumamide.com/ order cozaar 25mg pills
mobic over the counter – mobo sin generic meloxicam
order prednisone online cheap – corticosteroid purchase prednisone pills
best pill for ed – fast ed to take buy ed medication
buy amoxil without a prescription – https://combamoxi.com/ cheap amoxil tablets
order diflucan 200mg pills – on this site buy forcan pills for sale
escitalopram tablet – order lexapro generic escitalopram 10mg us
cenforce 50mg oral – cenforce 100mg oral buy cenforce 100mg pills
what is the cost of cialis – ciltad genesis best place to buy liquid tadalafil
order zantac pills – https://aranitidine.com/ zantac price