Arbitrum Airdrop Spikes Interest in DeFi
[TL; DR]
There was an increase of 37.44% in DeFi total value locked in the first quarter of 2023.
The ARB airdrop contributed to the increase of DeFi protocol total value locked.
Decentralized finance (DeFi) involves peer-to-peer transactions.
Introduction
Over the years there has been a decrease in the number of crypto projects that issue airdrops to their loyal community members. Some projects have replaced airdrops with ambassador programs to generate interest for their cryptocurrencies. However, Arbitrum, the layer2 blockchain’s airdrop has generated much interest in DeFi. In this article, we explore the importance of Arbitrum’s airdrop and how to buy the ARB token on Gate.io.
Arbitrum airdrop generates interest in DeFi
According to DappRadar’s Pedro Herrera, some developments in both the crypto sector and TradFi have helped decentralized finance (DeFi) to grow. We have seen the closure of several banks like Silvergate and Signature Banks which enticed many people to seek DeFi products.
Read also: USDC Stablecoin Issuer Befriends Cross River Bank
The tightening of regulatory oversight on centralized exchanges such as Binance has also made people realize that decentralized finance has advantages over them.
As a result, the head of research at DappRadar, an online store for decentralized applications, Pedro Herrera, told CoinDesk’s TV, “If you start to see how these use cases for DeFi start fitting and give you more autonomy to basically manage your own assets and investments, it’s the answer to why DeFi is [being] highly used.”
The increase in decentralized finance use cases and recent airdrops have resulted in a rise in the total value locked for DeFi. DappRadar’s recent report shows that DeFi’s total value locked increased by 37.44%, from $60 billion to $83.3 billion in the first quarter of 2023.
Increase in Total Value Locked for DeFi - DappRaddar
As you note in the diagram, there was an increase in DeFi total value locked from $60 billion to $83 billion in quarter 1, 2023.
The popularity in Ethereum scaling solutions like Arbitrum, Fantom, and Optimism contributed to the increase in the total value locked for DeFi. Also, there was high trading volume of ARB due to the ARB airdrop which increased the total value locked.
Benefits of the ARB airdrop
The long awaited airdrop of Arbitrum token, ARB, has much significance for the blockchain. This is because the ARB airdrop turned Arbitrum into a decentralized autonomous organization (DAO) which gives the ARB holders the chance to participate in Arbitrum’s decision making process as they can suggest or approve development initiatives for the blockchain.
DAOs like Arbitrum increase the community members’ sense of loyalty as they give inputs to the developers on how to improve the network’s products. Incidentally, a crypto project which has quality products attracts many users to join.
It is important to note that the ARB airdrop has progressed very well so far, except the hacking incident where an amount of the crypto airdrop worth more than $500,000 was stolen. Basically, the ARB airdrop intends to distribute 12.75% of its 10 billion Abitrum tokens. An eligible crypto wallet can get at least 625 ARB tokens valued between $400 and $1,250, depending on the current price of the cryptocurrency.
By the end of March more than 61% of the eligible wallets had collected the airdrop. However, the remaining 240 000 crypto wallets still have to claim their share. This claim should be done within the next six months.
There was much hype of the airdrop which led to many participants claiming their share within a few hours of the launch. As a result of the large number of users on the blockchain its front end shut down in the early stage due to that high level of activity.
However, at the beginning of the airdrop, the company responsible for the ARB airdrop, New York-based Offchain Labs, warned the users against copycat scams. It said, “This is the safest way to claim, and you’ll be able to vote for your favorite eco delegate.”
What is Arbitrum?
Abitrum is a layer2 scaling solution for the Ethereum blockchain. As such, it improves the efficiency and capabilities of EVM applications (dApps). Similarly, it increases their scalability and speed at low cost.
Arbitrum blockchain - Theblock
Basically, Abitrum solves the shortcomings of the Ethereum blockchain such as high cost and low speed. It achieves this by using rollups that bundle transactions and submit them as single batches to the Ethereum blockchain. Therefore, it removes a lot of computations and storage on the Ethereum blockchain.
What is DeFi?
We have already mentioned that the ARB airdrop has increased the total volume locked of DeFi. In simple terms, DeFi is a that uses cryptocurrencies and the blockchain to ute financial transactions. It achieves this through peer-to-peer provision of various financial services like loans and mortgages without relying on any intermediaries.
Therefore, wherever people have internet service they can trade, borrow and lend digital assets using suitable software s that record the transactions on the blockchain. People can use this irrespective of their geographical locations.
How to buy ARB at Gate.io
You can purchase ARB tokens at Gate.io at any time. The first step, however, is to have a verified Gate.io account. The next step is to fund your account using any of the major cryptocurrencies like Bitcoin, USDT or ETH.
Read also: How to Buy ARB Protocol (ARB)
You can purchase these major cryptocurrencies using a bank transfer or a credit card. Once you have any of the cryptocurrencies in your account you go to the Spot Trade Section and select the suitable pair such as USDT/ARB as indicated below.
Once you click on that pair, ARB/USDT, a new window will open that allows you to input the amount of ARB you want to buy.
Once you have input the amount of the ARB token you want to purchase click on “Buy ARB.” After that you will need to confirm the transaction.
Conclusion
The ARB airdrop has increased the interest in DeFi as many people participated in it. During the period towards the start of the Arbitrum airdrop, there was a rise in the total value locked. Importantly, the airdrop transformed the Arbitrum blockchain into a DAO.
