• Arbitrum is a layer-2 scaling solution on Ethereum that has seen explosive growth recently, with daily fees generated reaching nearly $300,000.
• This surge in usage has been accompanied by record highs in daily active users and unique addresses registered.
• Arbitrum’s DeFi TVL has risen to around $3 billion and its market share of all TVL in DeFi protocols is now 3.6%.
What is Arbitrum?
Arbitrum is an Ethereum layer-2 scaling solution which allows for faster transactions and lower fees by batching transactions off-chain into so-called roll-ups.
Explosive Growth
Arbitrum’s usage has grown dramatically over the past few months, with daily fees generated hitting their highest level since June 2022 at nearly $300,000. It also ranks as the seventh highest cashflows generating crypto protocol according to Cryptofees.info. Additionally, the number of daily transactions taking place on the protocol have exceeded 1 million per day and Daily Active Addresses have hit record highs above 130,000 recently. Furthermore, the number of unique addresses registered on the protocol continues to post impressive growth and should soon surpass 3 million.
DeFi Adoption & Trading Volume
Arbitrum’s Total Trade Value Locked (TVL) in Decentralized Finance (DeFi) protocols stands at around $3 billion which makes it the fourth highest TVL chain according to DeFi Llama data. GMX decentralized exchange recently surpassed $100 billion in all-time trading volume which took place mostly on Arbitrum and its daily swap volumes reached above $23 million this week – a record high since December 2020. As a result of recent growth, Arbitrum’s market share of all TVL in DeFi protocols has risen to around 3.6%, up from under 2.5% this time last month, and up from only about 1% this time last year.
Impact on ETH Price
The increased usage of Arbitrum could have a positive impact on Ethereum prices as it relieves some pressure from Ethereum network congestion by shifting some transactions off-chain onto its own platform – thus reducing transaction fees for those using its platform while still maintaining security guarantees similar to Ethereum’s mainnet itself due to its use of fraud proofs to verify any disputes that arise between parties during transactions taking place on it’s platform..
Conclusion
Arbitrum has seen explosive growth over the past few months due to wider adoption and scale up of DeFi applications as well as gaming activities taking place on it’s platform – resulting in record highs for daily active users & unique addresses registered along with an increase Total Trade Value Locked (TVL) in Decentralized Finance (DeFi) protocols standing at around $3 billion making it fourth highest chain according to DeFI llama data . This increased usage could potentially benefit Ethereum prices by reducing transaction fees for those using its platform while still maintaining security guarantees similar to Ethereum’s mainnet itself due to its use of fraud proofs system .