Optimism, Arbitrum retention charges could also be worthy of emulation – this is why

Posted: September 14, 2023

• Optimism’s user-retention was 30% whereas Arbitrum’s charge was additionally inexperienced.
• Their respective TVLs decreased within the final 30 days.

It’s no new improvement that Optimism [OP] and Arbitrum [ARB] have maintained their place as two of the highest Ethereum [ETH] scaling options. However what most individuals don’t know is that each initiatives have been in a position to retain a great variety of customers who’re in step with interactions on their respective mainnet.

How a lot are 1,10,100 ARBs worth today?

In accordance with Token Terminal, Optimism has been in a position to retain 30% of its mainnet customers within the final 30 days. For Arbitrum, the blockchain information platform additionally famous that its retention rate was one thing different initiatives might have to look into.

On common, @optimismFND Mainnet retains ~30% of its customers after one month pic.twitter.com/JH6EAdDQxQ

— Token Terminal (@tokenterminal) September 12, 2023

OP, ARB by no means fail to indicate up

Normally, when a mission has an excellent user-retention charge, it signifies that individuals on the blockchain are fairly content material with the use circumstances supplied by the mission. What’s extra stunning is that each Optimism and Arbitrum airdropped tokens for his or her early adopters. 

Typically, airdrops or incentives aren’t needed ensures for preserving consumer exercise on the excessive. So, this meant that each Arbtirum and Optimism are doing one thing proper to maintain customers coming again to their mainnet.

There are, nonetheless, a variety of causes for this improvement. In Optimism’s case, it constantly collaborates with different initiatives and appears to have ensured it’s high of market individuals’ minds. This appeared to assist it overtake Arbitrum’s market cap.

Much more just lately, the opBNB Mainnet went live only a few hours earlier than this writing. The opBNB is a partnership between Optimism and the BNB Chain. Its operate is to behave as an Ethereum Digital Machine (EVM)-compatible Layer 2 chain primarily based on Optimism OP Stack, which guarantees to revolutionize the blockchain business by providing cheaper gasoline charges and entry to blockchain know-how.

Previous to the launch, about 35 million on-chain transactions have been processed. This concerned 435,972 distinctive wallets, which means community exercise on Optimism was at its peak.

Each TVLs shrink

Arbiturm has additionally been doing its half to maintain its group. For instance, it just lately launched the Stylus Testnet which permits builders to construct and customers to entry cheaper gasoline charges. Nonetheless, the hike in retention has not translated into a rise for Arbtitrum’s Whole Worth Locked (TVL).

Supply: DefiLlama

Life like or not, right here’s ARB’s market cap in OP terms

The TVL represents the overall worth of property locked or staked in a protocol. When the TVL will increase, it means liquidity on the protocol has elevated. However when it decreases, it implies a scarcity of cash circulation.

From the chart above, Arbitrum’s TVL was $1.66 billion, a 16.07% lower over the past month. However within the final 24 hours, the TVL had elevated by 2.72%, which means that it was getting again its traction. Optimism confirmed a similar pattern. However its TVL was a lot decrease at $642.04 million.

Supply: DefiLlama