The Arbitrum protocol has received a lot of attention recently from non-native decentralised exchange (DEX) platforms. These DEXs have launched on the Arbitrum platform, increasing competition among the platform’s various protocols.
A growth in competition
One of the non-native DEXs that launched on Arbitrum, Uniswap continued to dominate the market share in terms of volume. Based on the information provided by Dune Analytics, Uniswap was one of the non-native DEXs that managed to capture 85.5% of the overall volume on the protocol.
The press time landscape of the Arbitrum platform was highly competitive, with a variety of DEXs vying for market share and volume dominance. One DEX that stood out on the platform was GMX, which recently hit the $100 million revenue mark.
GMX also made a number of collaborations with various protocols, which could further increase its competitiveness on the platform.
Congratulations to @GMX_IO for surpassing $100M on total fees! 🥳🥳🎉
Hopefully, $GMX will continue to shine in the future and have tremendous success🎉#GMX $GMX #Arbitrum pic.twitter.com/82JEOp8JxC
— Arbitrum Space (💙,🧡) (@Arbitrum_Space) January 7, 2023
This interest being generated from DEX’s also contributed to the number of active users on the Arbitrum network. The number of active users grew materially over the last few months according to data provided by Dune Analytics. At the time of writing, there were 201,618 weekly active users on the Arbitrum network.
In addition to the growing activity on the Arbitrum platform, there was also an increase in gas usage on the network.
According to data provided by Dune Analytics, the gas used on the Arbitrum network increased from 324,404 Gwei to 445,243 Gwei over December. This could be a sign of increased activity and adoption of the protocol.
The stablecoin angle
However, it’s worth noting that the growth of stablecoins on the Arbitrum platform has been declining. According to data provided by Santiment, the network growth of stablecoins, such as USDT, DAI, and USDC decreased materially over last week.
The decreasing network growth implied that the number of times the stablecoins were being transferred among new addresses decreased. This could potentially impact the overall volume and liquidity on the platform.
Overall, the Arbitrum protocol has become a competitive landscape with the launch of multiple non-native DEXs. While it’s still early to see how these DEXs will perform in the long term, the growing competition and gas usage on the platform could be a positive sign for Arbitrum’s adoption and development.