On-chain analytics firm Nansen recently released a report detailing the impact of the popular airdrop event on the Arbitrum network. The report highlighted that transaction count and daily users remained at historically high levels even after the airdrop, indicating that the chain’s ecosystem was able to sustain the surge of users and transactions.
However, the number of wallets making their first transactions slowly declined after the airdrop, suggesting that new user adoption following the event has been on a downward trend. Despite this, Arbitrum was able to retain a significant share of bridging volume from Ethereum, as data showed that the gross volume of Ethereum bridging to Arbitrum has stayed strong after the airdrop.
The Arbitrum airdrop was one of the most hyped crypto events in the first half of 2023, sparking the start of an airdrop season and allowing some airdrop hunters to collect tokens and consolidate assets worth up to $3.3 million into two wallets.
On the positive side, the report revealed an upward trend in the increase in gas spending on Arbitrum, showcasing growth in the chain’s usage. The value of transactions and transfers also exhibited similar patterns. These metrics show a significant growth for the ecosystem, despite the decline in new user adoption following the airdrop event.
While the airdrop helped in generating interest and boosting on-chain activities, the decline in new wallet transactions raises a few concerns. It indicates that events like airdrops can contribute to short-term growth in user adoption, but may not necessarily lead to long-lasting effects on the network’s overall activity and usage. The challenge for the Arbitrum network, as well as for other blockchain projects, lies in finding ways to maintain and grow user adoption beyond the excitement of events like airdrops.
Nonetheless, the fact that the Arbitrum network managed to retain a considerable amount of bridging volume from Ethereum offers a promising prospect for the future of the chain’s ecosystem. With the crypto market continuously evolving and new technologies emerging, it remains to be seen whether the Arbitrum network and other similar projects can continue to innovate and adapt to cater to the needs of their users and maintain a growing and engaged community of followers.
Source: Cointelegraph
