OKX Ventures, a famous crypto exchange, has recently drawn a comparison between Optimism (an Ethereum-based L2 scaling solution) and an L2 solution project Arbitrum in terms of user retention. The platform shared a thread of tweets stating explaining the approach of both Optimism and Arbitrum to indicate the difference.
◀️ User Retention on @arbitrum and @optimismFND
While #Arbitrum arguably relied on organic growth, #Optimism focused on incentivizing users to accumulate their respective 3 million unique users over the past year.
🧵 pic.twitter.com/ZokWvZsLk7— OKX Ventures (@OKX_Ventures) March 4, 2023
OKX Ventures Draws Parallels between Optimism and Arbitrum over User Retention
It noted that Arbitrum supposedly depended on organic expansion. On the other hand, Optimism provided considerable attention to offering incentives to the consumers to amass their respective 3M exclusive consumers during 2022. The size of the latest per-month consumer cohort of Ethereum elevated almost by ten times in the previous year. There were up to 29,000 consumers in January 2022 while the respective size mounted to nearly 236,000 by December 2022.
The rate of short-term retention at Optimism expressed a lot of steadiness as the consumers expanded in number during 2022. Nonetheless, OKX added, the rates of long-term retention have not yet matched the normal 35% to 40% rate. The crypto platform stated that both Optimism and Arbitrum remained effective in retaining an equivalent 35% to 45% portion of the latest short-term consumers.
Trending Now: Silvergate Exchange Network Put on Hold in Times of Emergency
However, a large portion of Optimism’s user base comprised long-term users. OKX referred to the native applications as the reason for the rates of application-level retention on Arbitrurm. Along with this, the crypto exchange also mentioned that the applications taking part in an incentives project powered the retention rates of Optimism. Although the Odyssey generated a rise in the latest activity on Arbitrum, arguably because of the speculation related to an airdrop, very little was done by it in the case of exclusive customers.
User-Incentivizing Applications Retained More Users on Optimism, Says OKX Ventures
While elaborating on this, OKX mentioned that the user retention-related distinction was clarified over time on Optimism. In comparison with the application-level average around the network, applications providing incentives to the consumers relatively retained more user portion over time. It is noteworthy that Arbitrum’s average transfer fees kept on varying during the previous year.
After the Nitro upgrade of the platform, a 50% decline with witnessed in the fees. The respective change shows the drop in the average per-month fees during the timeframe of 4 to 9 months. While concluding, OKX asserted that Arbitrum witnessed comparatively more organic consumer growth as compared with Optimism.