The total value locked (TVL) in the Ethereum layer-2 solution Arbitrum over the past week rose by more than 3,200% and reached a record $2.2 billion.
As of writing, Arbitrum accounts for nearly 74% of TVL among L2 protocols, according to L2Beat. In second place on the ranking is the DeFi-project dYdX with around 11%.
The company behind Arbitrum, Offchain Labs, announced the mainnet launch on August 31, 2021 after a funding round of $120 million.
The exponential growth in TVL began on September 9, when the startup launched the ArbiNYAN yield-farming program based on the NYAN token.
Farm NYAN on Arbitrum! Eth pool launch 23:00 UTC pic.twitter.com/RiOlaNkQqn
— arbinyan (@arbinyan) September 8, 2021
On Saturday, Messari analyst Ryan Watkins drew attention to inflows to Arbitrum.
“The volume of assets locked in Arbitrum is approaching $500 million, up 662% over the past week. Reaching $1 billion is just a matter of days. Don’t miss Ethereum L2s — they’re not even in their final form.”
Arbitrum TVL quickly approaching $500M, up 662% over the past week.
On pace to reach $1BN in TVL is just a matter of days.
Don’t sleep on Ethereum L2s — They’re yet not even in their final form. pic.twitter.com/q9bxM4KFJu
— Ryan Watkins (@RyanWatkins_) September 11, 2021
Watkins’s forecast came true on the same day — the figure exceeded $1.4 billion.
The NYAN price as of September 12 rose from a few cents to nearly $8. However, it subsequently collapsed sharply, and at the time of writing the asset trades at around $0.50, according to Defined.
Reddit selected Arbitrum to scale its Community Points rewards program based on tokens.
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