It may not be long before Arbitrum outshines Ethereum, but only if…  

• Arbitrum’s Unique Addresses graph increased, but its TVL fell.
• ARB’s price surged by over 4% in the last 24 hours.

Arbitrum [ARB], one of the most popular layer-2s, recently reached a milestone that can pose a serious challenge to the likes of Ethereum [ETH].

Arbitrum is only behind Ethereum

CryptoRank.io, a cryptocurrency research and analytics platform, recently posted a tweet highlighting the top blockchains in terms of TVL per unique address.

This is calculated by dividing the TVL by the number of unique addresses.

As per the tweet, Ethereum sat in the first spot on the list, followed by Arbitrum. Avalanche [AVAX], Tron [TRX], and Aptos [APT] also made it to the top five on the same list.

Interestingly, ETH stood at $213, while ARB was marginally lower, at $195.

Since the difference between the two was not much, AMBCrypto planned to take a look at Arbitrum’s current performance to see whether we can expect ARB to outshine ETH in the coming days.

Our analysis of Arbiscan.io’s data revealed that ARB’s Unique Addresses continued to climb sharply as the number exceeded 20 million.

At press time, Arbitrum had a total of 20.25 million Unique Addresses, reflecting robust network growth.

Source: Arbiscan.io

Arbitrum has to boost efforts

At first glance, this looked optimistic, but upon closer inspection, AMBCrypto found that ARB might not yet be able to outperform Ethereum just yet.

This is because the TVL per unique address also takes into account a blockchain’s TVL growth.

Our look at Artemis’ data revealed that while ARB’s unique addresses grew, its TVL dropped sharply over the last 30 days, suggesting that ARB’s performance has to improve a lot to beat Ethereum cohesively. 

Source: Artemis

Arbitrum’s captured value also registered a decline last month. This was evident from the drop in both its fees and revenue during the last 30 days.

Nonetheless, ARB’s network activity remained high. The blockchain’s daily active addresses and transactions went up, suggesting high usage. 

Source: Artemis

Read Arbitrum’s [ARB] Price Prediction 2024-25

In the meantime, ARB bulls also stepped up their game as the token’s price registered an uptick. According to CoinMarketCap, ARB was up by more than 4% in the last 24 hours alone.

At the time of writing, ARB was trading at $1.47 with a market capitalization of over $3.9 billion.