Blockchain Analytics Service Nansen to Incorporate DeFi Protocol Arbitrum

Blockchain Analytics Service Nansen to Incorporate DeFi Protocol Arbitrum

The current ninth-ranked DeFi chain, Arbitrum, is locked with $2.38 billion in total value locked.

Nansen, a Blockchain provider announced the upcoming integration of the Arbitrum network to allow its users across the globe, both institutional-grade and retail, the possibility to identify emerging trends in the decentralized finance (DeFi) market.

Quantitative data and technical charts will be available to view within a bespoke Arbitrum dashboard, akin to the more than 100 million data points across Polygon, Ethereum, and Binance Smart Chain among others.

One of many tools that Nansen uses is Smart Money, a function that tracks the wallet addresses of hedge funds, whales, and institutional investments, gathering their activity into a visual graphic that permits users to determine technical patterns.

Apart from the above feature, other features of the platform include Mint Master and NFT Paradise, which give hints into the burgeoning non-fungible token (NFT) trends before they get to the mainstream.

At the beginning of November, this year, Nansen introduced plans to integrate a Solana dashboard as a means to expand users’ accessibility to on-chain data and performance metrics within the DeFi and NFT markets.

Following this announcement, the Nansen team published a research work claiming that layer-2 protocols such as Arbitrum have the potential to become market leaders in Ethereum scalability over the next 5 years, but do note:

Arbitrum One mainnet launched her rollup solution on the 1st of September, this year and has since then moved to prominence with over $2.38 billion in total value locked (TVL) according to analytical data from DeFi Llama.

This amount has been contributed to by an array of 41 protocols, most notably multi-chain protocol Curve Finance Which accounts for more than 22%, in addition to SushiSwap and Abracadabra, which record $525.54 million, $449.84 million, and $401.67 million in TVL, respectively.

Including compelling insights into Arbitrum’s low transaction costs and price of gas in similarity to Ethereum. Ethereum of which is substantially lower by approximately 80-90% – a research paper by Nansen commented on the probability of an Arbitrum native token launch, a topic of the discussion that has earned significant traction over some months ago during positive adoption.

Recently, the founder of Fractional Art, Andy Chorlian shared his own opinion on this debate suggesting that an Arbitrum token would possibly drive the protocol above the soaring layer-one blockchain Avalanche, which is currently sitting at 11th in the overall market capitalization rankings.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.