Arbitrum, an Ethereum Layer 2 protocol managed to push its TVL beating the overall DeFi market
The decentralized finance market has been witnessing heightened activity since the beginning of 2023. Out of the list, Arbitrum, an Ethereum Layer 2 protocol daily transactions reached a new high of 690,000.
The Ethereum Layer 2 scaling solution started the new year on a lower momentum in sync with other DeFi protocols. But, Arbitrum has managed to capitalize on the recent recovery in the market to push its own TVL.
Further, layer 2 decentralized exchange trading volume also beat that of Binance Smart Chain.
According to DeFilama, Arbitrum has been just second to Ethereum in terms of the DEX transaction volume.
As per on-chain data, Ethereum’s layer2 (L2) network hit an all-time high of 690,000 daily transactions on February 17. Arbittrum’s chain Nova and Once rose 168.81% and 67.88% in the last seven days.
Next, the Ethereum protocol netted a TVL of $1.02 billion and soared to over $1.5 billion by mid-February, an appreciation of more than 47% in less than two months.
The rise in adoption led to a massive gain in the Arbittrum TVL. Since the start of 2023, there have been some notable launches on the blockchain that led to attention to it. One of them is the launch of the Camelot decentralized exchange (DEX), which launched in December.
Another factor is the good performance of protocols operating on the blockchain. GMX, a derivative platform, which currently factored in the highest TVL of $463 million, accounting for over 30% of the TVL.