Name: Arbitrum One Transaction count Metrics
Creator: Token Terminal
License: https://tokenterminal.com/terms

Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

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Arbitrum One

# Arbitrum One Transaction count Methodology

## 1. Overview

The Arbitrum transaction count metric measures the daily volume of unique transactions on the Arbitrum Layer 2 network, categorized by destination contract. This metric answers the business question "How many transactions are being processed daily on Arbitrum, and which contracts are receiving the most transaction volume?" The calculation uses an approximate distinct count of transaction hashes grouped by day and destination address, providing insights into network activity and popular contract usage patterns.

## 2. Data sources

The calculation relies on three primary data sources:

- **Arbitrum transaction records**: Raw blockchain transaction data from the Arbitrum network containing transaction hashes, timestamps, sender and recipient addresses, and gas usage information
- **Contract labeling database**: A curated database mapping contract addresses to human-readable names and titles for major protocols and contracts on Arbitrum
- **Chain availability configuration**: Metadata defining time periods when Arbitrum data is considered complete and reliable for metric calculations

## 3. Step-by-step calculation

### Component A: Raw transaction processing
- **Purpose**: Extracts and standardizes raw Arbitrum transaction data for counting
- **Logic**: Sources all Arbitrum blockchain transactions including `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, and gas-related fields like `receipt_effective_gas_price` and `receipt_gas_used`. Sets chain metadata including `chain` as 'arbitrum', `market_sector_id` as 'blockchains_l2', and `business_segment_id` as 'blockchain'. Hardcodes the token information using Arbitrum's WETH address and ETH symbol for consistency
- **Key fields**: `block_timestamp` for time-based aggregation, `transaction_hash` for unique transaction identification, `to_address` for destination contract categorization

### Component B: Daily transaction aggregation
- **Purpose**: Groups transactions by day and destination contract to count unique transactions
- **Logic**: Truncates `block_timestamp` to daily boundaries using day-level granularity. Groups transactions by the truncated timestamp, chain metadata, and `to_address` field. Applies approximate distinct counting to `transaction_hash` for performance optimization while maintaining accuracy for large datasets. Includes incremental processing logic that processes only recent data based on configurable lookback days
- **Key fields**: `timestamp` as the daily boundary, `to_address` for contract-level breakdown, `transaction_count` as the approximate distinct count result

### Component C: Contract label enrichment
- **Purpose**: Adds human-readable contract names to transaction counts for better interpretability
- **Logic**: Performs a left join between the aggregated transaction data and the account labels dimension table using `to_address` as the join key. Maps contract addresses to their corresponding `account_title` from the labels database. For addresses without labels, assigns 'Unlabeled' as the default `contract_name`
- **Key fields**: `contract_name` derived from `account_title` or defaulted to 'Unlabeled', maintaining all original transaction count and metadata fields

### Final aggregation
- **Combining components**: The enriched transaction data flows through the `finalize_metric_transaction_count` macro which standardizes the schema, validates data integrity, and fills any gaps in the time series with zeros using the 'fill_zeros' strategy
- **Currency conversion**: No currency conversion required as this is a count-based metric
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day level, ensuring consistent daily aggregation across all transactions
- **Final calculation**: The final metric represents the approximate count of distinct transaction hashes per day per destination contract on Arbitrum, filtered by chain availability periods to ensure data quality and completeness

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Arbitrum OneARB