The Arbitrum network dominates Ethereum’s L2 ecosystem in terms of activity volume this week.
The cumulative trading volume on Arbitrum's DeFi applications over the past 7 days exceeds $7.100 billion, according to data from DeFi platform Llama. This is Almost 55% of the trading volume recorded by Ethereum this week and more than 3 times that recorded by other L2 blockchains.
According to data consulted on the platform, the volume of commercial operations in Arbitrum's decentralized applications is even higher than the volume of operations recorded by the Solana network, one of the most important blockchain ecosystems in the sector.
Source: DeFi Llama
Arbitrum is a second layer or Layer2 blockchain developed to expand accessibility to the Ethereum ecosystem. This solution inherits the security features of Ethereum's first layer, offering scalability and very affordable transaction fees to users.
The network is capable of processing a large number of transactions per second, compared to Ethereum, without sacrificing decentralization or security. Because of this and other advantages it offers, Arbitrum has become the most widely used L2 solution today.
New all-time highs
The total value locked or TVL of DeFi protocols and applications on Arbitrum set a new all-time high last week, $ 2.641 million dollarsThe previous high was seen in November 2021, when L2 reached $2.617 billion.
In terms of ETH, the network currently holds over 1 million ethers deposited in its smart contracts.
Source: DeFi Llama
On the other hand, according to data from DeFi Llama, Arbitrum is moving a trading volume of more than $400 million per day. This represents a 2,5-fold increase in the trading volume that the network moved in January of last year.
In the first few days of the month, this metric reached over $1.800 billion per day, briefly surpassing the volume recorded by Ethereum.
Source: DeFi Llama
Similar to the trading volume and trading activity on Arbitrum, its native token, ARB, has also seen significant growth over the past 7 days. At the time of writing, ARB is up 20% on a weekly basis and is trading at around $2,13.
New collaborations boost Arbitrum's growth
As the L2 ecosystem develops, it has been capturing the attention of users and developers in the crypto world, thanks to the scalability it adds to the Ethereum mainnet.
In relation to Arbitrum, L2 uses optimistic rollup technology to address Ethereum's scalability challenges by increasing the network's transactional throughput to process a large number of transactions per second at a fraction of the price of a typical transaction fee on the mainnet.
The development of the Arbitrum network has also been attracting users and developers to this blockchain ecosystem. Recently, the team behind the network announced new collaborations with projects such as Animalia, an NFT game and Kunji, a decentralized protocol. The Arbitrum developers also announced the launch of the second phase of its grant program, which will provide support to early-stage network-based teams and projects. All of these collaborations and developments seek to continue driving the growth of its crypto universe.
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