Ethereum’s layer 2 solution “Arbitrum” surpassed $2.2 Billion in Total Value Locked (TVL) in protocols using its services. The smart contract L2 saw an influx of more than 1 billion in just one day, resulting in its VL increase by 10 times in 2 days.
The figures indicate that the demand for Arbitrum’s network has increased sharply amongst people who use Decentralized Finance (DeFi) services. The sharp increase might have also been contributed by rumors suggesting that the protocol might be planning to issue its own token soon.
As per the data released by L2 comparison platform L2Beat, the combined TVL on Layer-2 solutions is now more than $3 billion, with Arbitrum contributing to the figure by more than 75%. The platform also reported the daily transaction volume of Arbitrum which stood at 267,000 yesterday, recording a growth rate of over 250%.
Many users were of the view that the recent spike was contributed by Arbitrum’s new DeFi service called ArbiNYAN, a yield farming platform that allows investors to receive multi-thousand percentage returns for staking its native token.
Data insights by L2 suggested that TVL on Arbitrum was about $240 million on the 10th of this month. However, the figure increased about 10 times, reaching $ 2.2 billion on the 12th.
Ethereum’s network has been in high demand due to an increase in NFT (Non-Fungible Token) and DeFi usage, which slowed down its processing speed and increased network fees (gas charges).
To reduce that burden, layer 2 technologies such as Arbitrum, which can process transactions separately from the main blockchain, have recently gained attention. Arbitrum officially launched the mainnet of one of its products, “Arbitrum One,” at the end of the previous month.
The number of Arbitrum unique addresses has also increased sharply since its launch. According to data by “ARBISCAN”, the number of addresses tripled from 24,330 on the 10th to 73,67 on the 12th.