YEREVAN (CoinChapter.com) – Ethereum scaling solution Arbitrum’s total value locked (TVL) exploded 86% year-to-date, pushed March 2022 highs, and stood at $1.92 billion on Feb 23. The layer-2’s dominance grew as the number of unique addresses on Arbitrum reached an all-time high.
Arbitrum for the win
The number of daily transactions on the Arbitrum Network jumped from almost 160,000 on Jan 1 to over 1.1 million on Feb 21, constituting a roughly 590% increase year-to-date, according to block explorer Arbiscan, and an all-time high for the Network.
The activity explosion also resulted in Arbitrum flipping Ethereum in the number of transactions for the first time ever, as seen in the chart below.
Moreover, the number of unique addresses on the Network has reached an all-time high of about 2.95 million. The heightened demand also meant that Arbitrum became the fourth-largest Network by TVL, after Ethereum, Binance Smart Chain, and Tron. Additionally, the Network raised its DeFi market dominance from 1.1% to 3.8% year-over-year.
Also read: Chainlink Automation Goes Live on Ethereum Layer 2 solution Arbitrum One.
Native projects on the Ethereum layer-2 also soar.
Meanwhile, Arbitrum native projects’ TVL soared as well. For example, the decentralized exchange ZyberSwap exploded by over 15,000% in the previous month, becoming the second-largest project on the Network by TVL.
Additionally, the first project by dominance, decentralized perpetual exchange GMX, also saw its same-name token soar over 85% year-to-date. However, GMX’s surge in TVL has been gradual since July 2022, reaching $535 million on Arbitrum at publication time.
Will Arbitrum continue the bullish streak?
In detail, Arbitrum is a smart contract rollup chain that aids Ethereum in processing an excessive amount of transactions on its mainnet. Moreover, some blockchain enthusiasts predict that Ethereum will “mainly concentrate” on maintaining those rollups in the next few years.
Also, rollups marked a significant shift for the blockchain industry, as they offered higher transaction speed without significant security sacrifices. A vast majority of end-user activity might be on rollups soon enough. If that scenario plays out, the necessity for layer-2 solutions will increase, ensuring a larger user base and higher returns.
Also read: Arbitrum Token Listing And Airdrop Attract Buyers, But Caution Advised.
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