Arbitrum Jumps 50%: $1.51B TVL Makes it Fourth in DeFi Space

Arbitrum TVL Jumps in 2023

• The Ethereum Layer 2 scaling solution, Arbitrum, has seen an increase of almost 50% in its TVL over the last two months.
• This puts it ahead of other networks such as Polygon, Avalanche, Fantom, Solana and Cardano.
• This growth is largely attributed to the rise in adoption of the network by launching various tokens on it such as Camelot’s GRAIL token.

Overview

Arbitrum is an Ethereum Layer 2 protocol that has been experiencing renewed interest this year. In particular, its decentralized finance (DeFi) market has seen a huge jump of nearly 50% within two months. This means that its Total Value Locked (TVL) now stands at $1.51 billion which places it fourth overall in DeFi space behind Ethereum, BNB Chain and Tron.

What Is Driving This Growth?

The surge in Arbitrum’s TVL can be attributed to the increasing adoption of the protocol by users who are using it to launch various tokens such as Camelot’s GRAIL token. The native token experienced a major rally reaching an all-time high above $3,000 which attracted more attention to the network and helped drive up its TVL even further.

Arbitrum Ahead Of Other Networks

The total value locked across networks like Avalanche, Fantom, Solana and Cardano is still much lower than that of Arbitrum at just $926 million, $508 million ,$249 million and $110 million respectively. This shows how far ahead Arbitrum is compared to these other networks when it comes to DeFi usage and momentum right now.

Conclusion

Overall this sudden surge in TVL for Arbitrum shows that despite the bear market conditions earlier on this year, people have become increasingly interested in using Ethereum Layer 2 protocols for their DeFi needs due to their scalability benefits compared to Layer 1 solutions like Ethereum itself. With more tokens being released on Arbitrum and with more people becoming aware of its advantages over other networks we could see even higher levels of growth going forward into 2023.