The evidence
Arbitrum’s March 25, 2026 recap examined the first DRIP season, which ran from September 2025 into February 2026. The campaign allocated 14.6 million ARB across twelve reward epochs and six lending protocols.
The recap reported growth in both dollar asset and ether lending markets over the campaign. These are historical program observations, not current balances or proof that every deposit was caused by incentives.
Source: Arbitrum DRIP season recap, March 25, 2026.
FOLITIC analysis
A deposit chart alone cannot show the durability of demand. A participant may supply capital to earn rewards, borrow against it and redeploy the proceeds into another eligible position. That process can enlarge several balances without introducing an equivalent amount of outside capital.
Investors should therefore separate gross deposits from net bridge inflows and measure how much capital stays after incentives decline. Borrowing demand and interest paid by borrowers provide a different signal from rewards paid by a program.
Changes in token prices can also distort dollar comparisons. An ether balance may rise in dollar terms while the quantity deposited remains unchanged. Reporting both units helps distinguish a market move from a user moving capital.
What to watch
Compare retention across the same contracts before and after each reward change. Look for sustained borrowing, diversified depositors and activity that continues without rising subsidies. A successful campaign should be judged across these measures rather than by its largest balance screenshot.
Image: File photograph of a Raspberry Pi and a network switch, illustrating interconnected blockchain infrastructure. Credit: RAIL P ( RAIL.PHOTOGRAPHY ) via Wikimedia Commons. Image license: CC0. Displayed with a responsive crop. This illustrative image does not depict the reported transaction.
