Arbitrum One Surpasses $10 Billion in TVL, Leading the L2 Race

aRBITRUM LOGO TITLED: aRBITRUM ONE LEADS l2 RACE

Arbitrum One, a layer-2 scaling solution for Ethereum, has reached a new milestone by becoming the first L2 network to surpass $10 billion in total value locked (TVL), according to L2Beat, a website that tracks L2 metrics. Arbitrum One’s TVL increased by 15.9% in the past seven days, reaching $10.22 billion as of January 2, 2024.

Arbitrum One TVL chart

TVL is a measure of the amount of assets that are deposited in a protocol or platform, and it reflects the popularity and adoption of the service. Arbitrum One, which launched on August 31, 2023, allows users to run smart contracts and decentralized applications (DApps) on Ethereum with lower fees and faster transactions, by using a technique called optimistic rollups.

Leading L2 Network

Among the assets locked in Arbitrum One, 30.9% are ETH, the native cryptocurrency of Ethereum, 23.68% are ARB, the native token of Arbitrum, 29.66% are stablecoins, such as USDC and DAI, and 15.76% are others, such as UNI, LINK, and WBTC. ARB, which is used to pay for transaction fees and security deposits on Arbitrum One, has risen more than 9% in the past 24 hours, trading at $18.32 as of press time.

Arbitrum One is currently the leading L2 network in terms of TVL, followed by Optimism, another optimistic rollup solution, with $3.64 billion, and zkSync, a zero-knowledge rollup solution, with $1.77 billion. L2 networks are expected to play a crucial role in scaling Ethereum and supporting its transition to Ethereum 2.0, a more secure and efficient version of the blockchain.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.