News13 September 2021

Total Value Locked for Arbitrum surges to $1.5B

Arbitrum's Total Value Locked Surges

Summary

  • Arbitrum One experiencing significant growth
  • Arbitrum was launched on Mainnet by Off-Chain Labs on 31 august
  • There has been increased liquidity migration to more affordable layer-two solutions
  • Arbitrum holds more than 65% of all capital invested in layer-two networks

Arbitrum One, an Ethereum-based layer-two rollup network, is now experiencing significant growth, with its TVL percentage rising by at least 2300% in the last week. This was discovered after an analysis platform compared layer-two networks and found that Arbitrum’s TVL was at an all-time high of $1.5B. This was mainly due to the rush of decentralized finance investors to invest in new farming dApps on the network.

On August 31, Arbitrum was launched on Mainnet by Off-Chain Labs after a successful funding round that raised $120 million. This has brought about a rise in the cost of Ethereum transaction fees, surging to a near all-time high. This has seen a liquidity migration to more affordable layer-two solutions and Ethereum rivals.

At the moment, Arbitrum holds more than 65% of all capital invested in layer-two networks, closely followed by dYdX DEX with 14.6%. The growth of Arbitrum is mainly because of its yield farm, ArbiNYAN, that has lured investors, bringing in multi-thousand percentages profits from native token staking.

However, the ArbiNYAN token success was short-lived after its value decreased by 90% in under 12 hours. The tone is currently trading under $1, down from its September 12 high of $7.85.

Kibet Elikana
Write a comment