Arbitrum TVL tops $10B, token price hits record high
Arbitrum’s TVL has exploded 430% year-to-date, a strong indicator of growing activity and adoption.
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Arbitrum One, a Layer 2 solution for Ethereum, has achieved a major milestone with its total value locked (TVL) surpassing $10 billion, while its token price breaks a new record high.
The total value locked on Arbitrum soared above $10 billion on January 3rd, marking a 430% increase year-to-date, according to data from L2BEAT. With this milestone, Arbitrum has become the first layer 2 network to cross the $10 billion threshold.
Optimism, Arbitrum’s layer 2 counterpart, follows closely behind with $6.3 billion in TVL. Only these two Layer 2 networks have TVLs exceeding a billion dollars and currently dominate the Layer 2 market.
Layer 2 protocols have become more prevalent in recent years due to their benefits like low transaction fees and high transaction speeds. The significant increase in TVLs on both Arbitrum and Optimism suggests a growing adoption of Layer 2 solutions. In particular, Arbitrum supports over 400 decentralized applications (dApps), per DeFiLlama.
In addition to the TVL record, Arbitrum has notched another milestone as its ARB token reached a new all-time high of $2.09 earlier today, according to data from Coingecko.
One of the key drivers behind the strong performance is Ethereum’s upcoming Dencun upgrade, which is expected to launch in Q1/2024. Notably, Dencun will introduce EIP-4844 (Proto-Danksharding) – a solution to significantly reduce transaction fees on Optimistic Rollups like Arbitrum and Optimism by up to 8 times.
Notably, Arbitrum is gearing up to unlock over $1 billion worth of ARB tokens in March, an important event that could impact its liquidity and market dynamics.
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