Is Arbitrum taking up Base’s market share?

Journalist

Posted: November 25, 2023

• Arbitrum began to take up Base’s market share.
• In the DeFi space, a similar pattern was observed.

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.

Growth on Arbitrum rises

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.

Transaction count on Arbitrum continues to take market share from Base.

Deploying a 50 million $ARB stimulus to the network is starting to pay off in what is clearly a more mature ecosystem.

Probably just the start of the rotation. pic.twitter.com/QS943lVYl2

— Emperor Osmo🧪 (@Flowslikeosmo) November 23, 2023

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

Growth in DeFi

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.

Source: Artemis

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.

Realistic or not, here’s ARB’s market cap in BTC terms

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.