Arbitrum’s TVL crosses $2 billion, what’s behind this growth?

• Arbitrum’s TVL grew to over $2.1 billion.
• Transactions recently spiked to around 2.8 million in a single day.

Arbitrum’s [ARB] Total Value Locked (TVL) has experienced notable growth recently. This expansion can be attributed to a recent strategic move by the team, and other key metrics have also shown positive responses.

Arbitrum sees a rise in key network metrics

AMBCrypto’s analysis of Arbitrum’s Total Value Locked (TVL) chart on DefiLlama revealed a consistent upward trend over the past few weeks. Around the 20th of October, the TVL was around $1.7 billion, and at the time of this writing, it was over $2.1 billion. 

Notably, it is not just the TVL that has experienced growth; the number of transactions has also been steadily increasing. In the last two days alone, there have been significant surges.

On the 25th of November, the transaction count reached 2.81 million, and it remained at that level as of this writing. The last time such transaction volumes were observed was around March, when transactions exceeded 3 million.

Source: DefiLlama

While the surge in TVL and transaction volume is more pronounced, there’s also an upward trend in the number of active addresses. Previously below 150,000, the press time count has risen to over 188,000.

Additionally, another noteworthy metric showing an increase was the stablecoin market cap, which rose gradually from around $1.6 billion in the past month to around $1.8 billion at press time.

These positive trends in metrics are attributed to the incentive program coordinated by the DAO.

The Arbitrum STIP

The Arbitrum Short-term Incentive Program (STIP) was organized through collaboration between the Arbitrum DAO and ARB token holders. In the initial phase, token holders participated in a vote to determine the allocation of ARB tokens for the program.

Ultimately, they agreed to a distribution of 50 million tokens spread over three months. 

The primary objective of the program is to provide grants to projects operating on the network, aiming to attract a larger user base.

Preliminary results suggested that the program’s anticipated impacts may already be underway, as reflected in the positive trends observed in Arbitrum metrics.

Read Arbitrum’s [ARB] Price Prediction 2023-24

ARB going in and out of profits and losses

Despite positive trends in key network metrics, the impact on the Arbitrum token has been less pronounced. AMBCrypto’s review of the daily timeframe chart showed that ARB has recently begun a recovery phase following more than a week of downtrends.

However, this upward trend experienced some minor setbacks. At the time of this writing, ARB was trading at around $1.06, reflecting a loss of less than 1%. In the preceding trading session, it saw a gain of over 1.6% in value.

Source: TradingView