Is Arbitrum taking up Base’s market share?

David Heredia November 29, 2023
Is Arbitrum taking up Base’s market share?

Arbitrum [ARB] has been one of the most dominant forces in the L2 sector. Due to its rising dominance, it has started to eat away from the progress of other L2 chains.

According to recent data, the number of transactions on Arbitrum is consistently growing, taking market share from Base.

The deployment of a 50 million ARB stimulus to the network is proving successful, indicating a maturing ecosystem. This is likely just the beginning of a broader shift.

The momentum shows the impact of the stimulus in strengthening Arbitrum’s position. It signifies the early stages of a transformative phase for the platform.

The increasing transaction count on Arbitrum suggests a growing preference for Arbitrum over Base.

As more users engage with Arbitrum, it could lead to increased network effects, making it more attractive for developers and users alike. The positive response to the stimulus hints at potential further growth and adoption.

However, it’s essential to monitor how Base reacts to this evolving competition.

In the DeFi sector, Arbitrum was doing really well. The TVL of the network grew over the last few weeks.

Coupled with that, the overall DEX volumes on Arbitrum surged as well. However, the same could not be said about the Base network. The growth for Base in these areas had reduced dramatically, during the same period.

The success of Arbitrum in DeFi is making it more popular. More money is being put into it, and people are trading more on its decentralized exchange. This is a good sign for Arbitrum.

On the other hand, Base is not doing as well in these areas. It’s not getting as much growth, and fewer people are using it for decentralized exchanges.

This suggests that, for now, Arbitrum is outperforming Base in the DeFi sector. The impact could mean more developers and users favoring Arbitrum over Base because of its growing success and activity.

David Heredia