Arbitrum’s Stargate Network Growth Reaches All-Time High, Why?
Stargate’s (STG) network growth on the Arbitrum network has reached an all-time high. According to cryptocurrency analysis firm Santiment, the feat comes despite STG’s price falling by 51% since its peak on Feb. 18th, 2023.
According to Santiment, the growth may be attributed to active voting within the Stargate DAO (Decentralized Autonomous Organization). However, there could be a plethora of other reasons for STG’s network growth, as people are participating in a wide range of activities online. Santiment explained that, with such massive network activity, there is a high risk-reward ratio.
Nonetheless, Santiment noted that nothing could stop the Arbitrum-based Stargate from crashing. However, “if the market decides to change direction, STG is best prepared already,” the firm noted.
What is Arbitrum’s Stargate community voting on?
As mentioned by Santiment, the active voting within the Stargate DAO may be responsible for the sudden network growth. The Stargate community is currently voting on a proposal to Bootstrap liquidity for Stargate USDT pools on Pendle.
If successful, this proposal will result in a bootstrapped Stargate-USDT yield market that immediately allows users to trade yield or lets them provide liquidity into the pool. Furthermore, this will enable Stargate’s USDT pool to increase in TVL through Pendle, as all deposits made through Pendle will be returned to Stargate.
Arbitrum’s (ARB) growth in the past few days has been phenomenal. Just ahead of its airdrop, Arbitrum (ARB) reached an all-time high in daily transactions and unique wallets engaging with the network. The network handled around 1.66 million transactions on March 21 and 1.56 million transactions on March 22. Similar activity took place towards the end of February as well. Additionally, there were more transactions on Arbitrum than on the Ethereum mainnet over the same two days. According to Etherscan, Ethereum supported slightly more than 1 million transactions daily.
At press time, ARB traded at $1.14, down by 10.2% in the last 24 hours. On the other hand, STG traded at $0.631139, down by 2.6% in the last 24 hours.
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