Arbitrum, a prominent layer 2 scaling solution for Ethereum, has experienced a notable surge in Total Value Locked (TVL) following the introduction of its Short Term Incentive Program (STIP). Launched with the intention of distributing 50 million $ARB to Dapps within the ecosystem, the program aims to catalyze network and ecosystem growth, with all incentives set to be distributed by January 31, 2024.
1/8 Arbitrum's $ARB incentive program is showing early signs of success
Since launch: TVL is up by 26%. New users up 27%. Some protocols seeing 50x growth per $ spent on incentives
Let's dive in 👇
— Lucas (@LucasOutumuro) November 29, 2023
Lucas Outumuro, Head of Research at intotheblock, shared insights indicating positive outcomes from Arbitrum’s $ARB incentive initiative. Of course, early results showcase a 26% increase in TVL and a substantial 27% rise in new users since the program’s debut. Impressively, certain protocols leveraging the incentives have yielded a remarkable 50x return on investment.
Among the standout performers, @GMX_IO demonstrated the most significant TVL gain in terms of dollars, amounting to around $100 million. Meanwhile, @AngleProtocol exhibited the highest percentage increase in TVL, soaring by an impressive 5,900%.
Also, on the flip side, Kyber experienced a decrease of -$17 million, marking a substantial 99% decline since its exploitation.
One noteworthy metric highlighting the program’s impact is the surge in the number of new addresses completing their first transaction on Arbitrum, witnessing a substantial 27% rise compared to pre-STIP levels.
Despite being in the early stages of implementation, the Arbitrum STIP has proven effective in driving crucial measures upward. Protocols utilizing $ARB incentives have demonstrated the ability to bootstrap TVL and revenue at an accelerated pace.
Finally, As the program progresses towards its conclusion, a more comprehensive evaluation of its overall impact and sustainability will provide a clearer understanding of its significance within the Arbitrum ecosystem.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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