Arbitrum Airdrop Guide – Benzinga

Arbitrum is an Ethereum scaling solution that is taking the crypto community by storm with hints of a possible upcoming Arbitrum token airdrop. With its unique set of off-chain and on-chain executions, Arbitrum strives to deliver ultra-fast and profitable trades.

In recent months, Arbitrum has gained considerable momentum, with an increase in liquidity flowing into the network. Rumors are swirling about a possible Arbitrum crypto airdrop in the near future.

Optimism, an Ethereum scaling solution about half the size of Arbitrum, completed the first stage of its airdrop in mid-2022, launching an average of 777 Optimism tokens per wallet (about 500 $ at the time). Given the larger size of Arbitrum than Optimism, it’s unclear how lucrative an Arbitrum airdrop could be. For example, Bored Ape Yacht Club Non-Fungible Token (NFT) owners have received tens of thousands of dollars of APE dollars.

Although there have been no official announcements yet, there are several key reasons that could explain why an Arbitrum drop is more than likely. The following article will explore the Arbitrum ecosystem and the likelihood of an airdrop – discussing strategies that could increase your chances of eligibility.

What is Arbitrum?

Arbitrum is a Layer 2 solution that seeks to address network congestion, low efficiency, and higher transaction fees on Ethereum – the world’s second largest cryptocurrency by market capitalization.

Arbitrum enhances the capabilities of Ethereum smart contracts through a method called optimistic cumulation, a type of data compression technique for blockchain transactions that bundles batches of transactions into a single transaction.

The advantage of this technique is that blockchains only need to verify one transaction – the cumulative transaction – instead of having to confirm each individual transaction that is part of the cumulative. This process improves efficiency, as the blockchain only needs to confirm one transaction, avoiding having to wait while many transactions are validated at once.

Although this process takes place on a separate layer to increase speed and scalability, Arbitrum takes advantage of the security provided by the Ethereum mainnet. All transactions validated on Arbitrum are sent back to Ethereum.

Arbitrum vs Other Blockchain Networks

Arbitrum is designed to provide a user-friendly platform that developers can work in to launch highly scalable and efficient Ethereum-enabled decentralized applications (dApps). However, it is not the first platform seeking to overcome Ethereum’s limitations.

Notable competitors include Polygon, Optimism, and Metis, among others. The following features separate Arbitrum from the rest.

High EVM compatibility

Arbitrum is widely considered to be one of the most EVM-compatible rollups. It is compatible with EVM at the bytecode level and with any language that can be compiled to EVM, such as Solidity and Vyper.

market leader

In early February 2023, Arbitrum has the highest total value locked (TVL) of any Ethereum Layer 2 solution. Arbitrum takes a slight advantage over Polygon with a TVL of $1.25 billion (2.55% of the TVL of industry) compared to Polygon’s $1.23 billion TVL.

Supporting a higher TVL than Polygon is no small feat. Polygon is one of the top 10 cryptos by market capitalization with a market capitalization of $10 billion. For comparison, the second largest Layer 2, Optimism, has a market capitalization of $500 million.

Well developed ecosystem

Arbitrum already collaborates with a wide range of Ethereum dApps and infrastructure projects, including Uniswap, Sushi, DODO, and dozens more.

Will there be an Arbitrum Airdrop?

As of January 2023, no official plans have been announced for an Arbitrum cryptocurrency airdrop. However, here are some compelling reasons why an Arbitrum drop is likely.

Although Ethereum Layer 2 networks do not require a native token to function, many other Layer 2 projects have launched their own tokens to aid in governance and other use cases. Some notable examples include:

• Polygon
• Optimism
• Metis
• Loop

On April 20, 2022, the same day the Optimism drop was announced, Steven Goldfeder of Arbitrum tweeted the following message:

Another key reason why Arbitrum may launch a token airdrop is to reward its early adopters and regular users. This strategy has been used by several successful cryptocurrency projects, including Uniswap, one of the top 20 cryptos by market capitalization.

Arbitrum AirDrop Guide

Unfortunately, there’s no way to guarantee that you’ll be eligible for the Arbitrum airdrop – if there is even one. However, several strategies can improve your chances of eligibility. These strategies aim to maximize your activity, consistency, and reach in the Arbitrum ecosystem.

1. Buy Ethereum

The first step you need to take to have the best chance of getting an airdrop is to acquire ETH – the native cryptocurrency of the Ethereum network. ETH is used to pay transaction fees on the Ethereum and Arbitrum mainnet.

Ethereum can be purchased through a centralized crypto exchange such as Coinbase, Uphold, or KuCoin. After acquiring the ETH, you transfer it to the software wallet of your choice.

Make sure that your chosen software wallet supports ETH or works on the Ethereum mainnet. MetaMask – an Ethereum-enabled wallet that connects to hundreds of decentralized applications (dApps) – is a great choice.

2. Connect Arbitrum to MetaMask

To see ETH in your wallet, add the Arbitrum network to MetaMask (or your other chosen software wallet). This is an extremely easy step.

In the case of MetaMask, the easiest way to connect to Arbitrum is through the one-click method. To do this, visit the Arbitrum Bridge website and click Add/Switch to Arbitrum Network.

You will receive a pop-up message from MetaMask. Click Approve and the Arbitrum Network will be added to your MetaMask wallet.

3. Pass funds to Arbitrum

After purchasing ETH, the next step is to link your ETH from the Ethereum mainnet to the Arbitrum network.

To link ETH, visit the Arbitrum website and connect your personal wallet to the app. From there, follow the instructions provided – the whole process may take several minutes.

4. Complete Chain Guild Quests

Once your ETH has been linked to the Arbitrum network, you will be able to perform a few tasks on Arbitrum which will give you access to the Arbitrum guild.

Currently, there are no additional benefits to joining the guild other than a corresponding role in the official Arbitrum Discord; however, it’s a great starting point for new users. To join the guild, visit the official guild website and complete the necessary tasks.

4. Weekly Arbitrage Interactions

Interact with Arbitrum frequently – on a daily or weekly basis. This important step ensures that you are an active and consistent user.

The rationale is to use as many protocols that support Arbitrum as often as possible. The developers haven’t released any specs on how much ETH (or other tokens) you need to move around. It is up to you to determine the appropriate amount of assets you want to keep on the Arbitrum Network based on your unique risk tolerance.

Popular protocols you can use that support Arbitrum and have interesting use cases include:

• GMX
• Hop Protocol
• Kyber Network
• 1 inch
• Shell Protocol

Consider swapping, taking trades and adding liquidity and staking within liquidity pools.

Where to buy Ethereum

ETH can be traded on major exchanges such as HYCM, Binance (or Binance.US for US investors), Uphold, Crypto.com and KuCoin. Many of these platforms allow you to buy ETH using your credit card, through exchange features, or through trading pairs such as ETH/USDT or ETH/BTC.

How to store Ethereum

Ethereum can be stored securely using a crypto wallet. Choose from two types of crypto wallets: software and hardware wallets. Software wallets allow users to easily manage their cryptocurrency, including buying, selling, trading and lending via the Internet. Hardware wallets, which keep private keys offline, are considered the safest way to store ETH.

If you plan to actively engage in these tasks, it is recommended to use a software wallet. Software wallets are superior for connecting and interacting with decentralized applications (dApps) on the Arbitrum network.

Best Software Wallet: Trust Wallet

Trust Wallet is a market-leading software wallet that allows crypto holders to store, buy, trade, and collect cryptocurrencies and NFTs in one place. Acquired by Binance in 2018, Trust Wallet is trusted by millions of users around the world. Users can access over 250,000 crypto assets on over 65 blockchains, making it a great choice for investors on all ends of the spectrum.

Is preparing for the Arbitrum Airdrop worth it?

While there is no guarantee that Arbitrum will airdrop or launch a utility token, strong evidence suggests it is likely. To maximize your chances of eligibility, you may consider completing a few of these tasks.

Whether an airdrop is announced or not, Arbitrum remains an excellent layer 2 solution with a vibrant ecosystem of dApps. Being an active user does not guarantee that you will be rewarded; however, the ability to take advantage of some of Arbitrum’s fascinating dApps and learn more about decentralized finance (DeFi) is a plus.