According to data from IntoTheBlock, the number of new daily active addresses on the Arbitrum network has grown by 27% since the launch of the Short-Term Incentive Program, STIP.
According to the platform's data, as of November 17, the number of new daily active addresses on the Arbitrum network exceeded 60.000 addresses.
This metric refers to the number of crypto addresses interacting with the Ethereum second-layer network for the first time and making their first ETH transaction.
In addition to the number of new daily active addresses on the network, the total value deposited or TVL (Total Value Locked) Arbitrum's share price also soared after the activation of the STIP program.
Data from IntoTheBlock shows that Arbitrum’s TVL has seen a 25,07% increase from mid-October to the time of this writing.
According to a report published by the platform, this increase is also related to the activation of the STIP program.
Arbitrum DeFi Protocols Attract Higher Capital
All decentralized protocols built on Arbitrum have seen sustained growth since the activation of the STIP program, IntoTheBlock noted.
In her report, the platform indicated that on Friday, November 10, there were registered Net inflows of nearly $80 million on the network’s DeFi protocols. Also, on most days since STIP went live, Arbitrum’s decentralized protocols have seen positive inflows, highlighting the interest this new incentive program is generating in the crypto community and among investors.
IntoTheBlock highlighted that this growing interest is related to the expectations that network users have of accessing higher returns.
“As distribution began, growth continued to accelerate, leading to Arbitrum’s TVL growing by 25%”
The platform also notes that Arbitrum's DeFi protocols, which have begun to distribute incentives with STIPs, are managing to attract more capital with a smaller amount of dollars allocated in such incentives.
For example, IntoTheBlock noted that lending protocol Silo, which allows users to borrow ETH and USDC against a wide range of tokens, attracted over $41 million in TVL, using the 800 ARB tokens, worth an estimated $800.000, that were allocated to it as part of the aforementioned program.
“We see that Silo has seen a 52x growth multiple per dollar allocated”, the platform's analysts commented.
On the other hand, IntoTheBlock also highlighted that most DeFi protocols on the Arbitrum network are recording an increase in their revenue relative to the subsidy amount, with Gamma and Balancer being the protocols with the greatest growth in this sector.
Although the STIP program only recently began, the platform noted that the growth that Arbitrum has seen in the number of daily addresses and the TVL of its decentralized protocols over the past month is a clear sign of the positive impact that the incentive program is having on the development and expansion of its L2 ecosystem. However, the platform also noted that it will publish a new report at a later date to analyze whether the positive effects of STIP on the adoption rate and TVL of the Arbitrum network are long-lasting or if it is just a transitory effect that will end when ARB concessions are exhausted.
What is the STIP incentive program?
STIP is a short-term incentive program, developed by the Arbitrum Foundation in conjunction with the crypto community, to to promote greater use of it and of the protocols and decentralized applications (DApps) that live on the network, as well as attract more liquidity to this blockchain.
In the first round of incentives, which was voted on and approved by the Arbitrum community in mid-October, 49,6 million ARB tokens, valued at around $40 million at the time of distribution, were distributed among 29 protocols on the L2 network.
The decentralized exchange protocol GMX was the recipient of the largest volume of STIP grants, receiving 12 million ARB tokens. GMX, like the rest of the protocols that are part of the STIP program, are using the subsidy to incentivize users to deposit liquidity in their respective contracts and make greater use of them through transactions.
Continue reading: Arbitrum DAO votes to activate ARB staking
