The number of new wallets making initial transactions has gradually decreased post-airdrop, indicating a decline in new user adoption following the event.
On-chain analytics firm Nansen released a new report detailing what happened to the Arbitrum network after its popular airdrop event. From sustaining the surge of users and transactions to a decline in new wallets conducting their first transaction, the analytics company analyzed the impact of the airdrop on the chain’s ecosystem.
On March 23, the Arbitrum Foundation airdropped its new token to eligible community members. According to the organization, Arbitrum (ARB) tokens marked its shift into a decentralized autonomous organization (DAO).
More than two months after the airdrop, Nansen analyzed the blockchain’s performance in various metrics on-chain. Within a new report, the analytics company highlighted that the influx of on-chain activities had been sustained.
According to Nansen’s data, transactions and daily users remained at historically high levels even after the airdrop.
In addition, the data also showed 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.
While many metrics showed significant growth for the ecosystem, the number of wallets making their first transactions slowly declined after the airdrop. This suggests that the number of new users coming in has dropped since the popular event.
Despite this, the Arbitrum network was able to retain a significant share of bridging volume from Ethereum. Data showed that the gross volume of Ethereum bridging to Arbitrum has stayed strong after the airdrop, with Arbitrum keeping the second-largest spot just after Polygon.
The Arbitrum airdrop was one of the most-hyped crypto events in the first half of 2023. It sparked the start of an airdrop season and allowed some airdrop hunters to collect tokens and consolidate assets worth up to $3.3 million into two wallets.