According to U.Today, Ethereum layer-2 scaling solution Arbitrum has reached a significant milestone with its daily transactions soaring to two million as of May 8. This data was provided by crypto analytics service provider IntoTheBlock (ITB). Since March, Arbitrum has consistently averaged one million transactions per day, demonstrating its user-friendly nature compared to other networks.
The increase in Arbitrum transactions has been a gradual process. The one-year chart shows that Arbitrum's transaction growth remained relatively stable, ranging from 100,000 to 500,000, from September through October 2023. However, since early March, the number of transactions on Arbitrum has seen a strong increase, reaching over 2 million daily transactions.
This milestone coincides with the protocol's announcement of a new update to its Stylus MultiVM protocol, known as the Giga-update. This upgrade aims to further reduce transaction fees by 2 to 4 times. The Stylus update also includes improved tooling, enhanced safety, and contract size compression for better functionality.
Arbitrum holds a unique place in the Ethereum L2 ecosystem. Despite price fluctuations and bullish fundamentals, the protocol has always left users wanting more. In mid-March, as many as 1.6 billion ARB tokens entered the market. Despite the bearish sentiment at the time, the tokens demonstrated resilience. Currently, Arbitrum is trading at $1.02, up slightly by 0.17%.
Top market analyst Ali Martinez has indicated a buy signal on the Arbitrum weekly chart using the TD Sequential indicator. This suggests a one-to-four-candlestick rebound for ARB in the near future. However, it is still uncertain how ARB will respond to the bullish updates within its ecosystem. One thing is clear: the user count is increasing, the network is becoming more efficient, and the demand for ARB is set to increase in the long term. This trend could potentially position ARB for a significant rally in the near future.