Reviewing the Effects of the Arbitrum Airdrop

The Arbitrum airdrop on March 23, 2023, brought a huge surge of on-chain activity as users claimed their airdrops. The price of the ARB token soon stabilized around the $1.20 to $1.40 range, giving the ARB token a market cap of roughly $1.6 billion, the highest valuation of any other Layer 2s today. 

Consequently, the airdrop also injected a substantial amount of liquidity into the Arbitrum ecosystem, which induced more activity on Arbitrum's decentralized exchanges (DEXs) and more bridging activity between Arbitrum and other chains. It should be noted that the ARB token was airdropped to over 625,000 users, which is approximately 13.9% of Arbitrum's 4.4 million distinct users.