• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • About us
  • Write for us
  • Terms and Conditions
  • Privacy Policy
  • Disclaimer
  • Contact
  • All Posts
  • Advertise

TronWeekly

Crypto World News

  • Home
  • Education
    • Best TRON Wallets
    • Beginner’s guide to TRON
  • Opinion
    • Tron Tokens
    • Market Analysis
  • Industry
    • Tron Exchange
    • Project Review
  • Press Release
  • Advertise
  • About us
    • The Team
    • Editorial Policy
    • Write for us
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • Contact
You are here: Home / News / DeFi / What’s the reason behind Ethereum Layer 2 Arbitrum’s astonishing growth?
What's the reason behind Ethereum Layer 2 Arbitrum's astonishing growth?

What’s the reason behind Ethereum Layer 2 Arbitrum’s astonishing growth?

September 14, 2021 by Chayanika Deka

Ethereum second-layer scaling solution, Arbitrum’s has managed to capture the decentralized finance [DeFi] market. The platform has witnessed rapid growth as market participants continue to deploy their capital in emerging yield farms. Developed by Offchain Labs, Arbitrum uses Optimistic Rollups to process transactions at an enhanced speed and is significantly cost-effective than Ethereum mainnet while simultaneously profiting from the security of the base chain.

If the latest stats are to be believed, the total value locked [USD] in the project skyrocketed to $2.23 billion. According to an analysis platform called L2beat, the TVL figures soared by an astonishing 2,411% over the past week alone. Ethereum locked in the protocol also has been climbing higher and stood at 669.7k ETH as of September 13.

Arbitrum
What's the reason behind Ethereum Layer 2 Arbitrum's astonishing growth? 3

Ethereum layer 2’s Growth Trajectory

During the weekend, the yield farms for speculative tokens launched causing bridge volume to spike. The FOMO kicked in and the bridge volume spiked. The main reason behind the abrupt upswing was the launch of a yield farm called ArbiNYAN. Arbitrum’s growth coincided with the shrinking TVK values of “Ethereum Killers” such as Solana, Fantom, and Harmony.

According to Nick Chong, an investment analyst at ParaFi Capital, Ethereum’s transaction costs has been one of the biggest narratives this year. At the beginning of 2021, users observed other networks that run the Ethereum Virtual Machine [EVM] that provided low transaction fees and low latency but often ended up compromising on security with smaller node sets and centralized bridging infrastructure.

Then entered Rollups. These are scaling solution that acquires the security of the underlying network while at the same time enhancing transaction throughput and fees. Rollups aimed to address the never-ending debate of trade-offs between fees, security, and usability. Chong expressed his optimism surrounding the Arbitrum project and tweeted,

“Really excited to see the Arbitrum ecosystem develop. Also keeping a close eye on projects launching on Arbitrum first, then branching out to other networks. This may increasingly become a commonly seen playbook for applications w/ users that have sensitivity around tx fees.”

Filed Under: DeFi, News Tagged With: Arbitrum, DeFi, Ethereum (ETH)

Primary Sidebar

Recent Posts

  • Litecoin’s Confidential Transactions Lead to Warnings by Korean Exchanges May 24, 2022
  • The Intruder Who Visited Do Kwon’s Home Speaks to the Public May 24, 2022
  • eBay teams up with OneOF to release the first-ever “Genesis” NFT collection May 24, 2022
  • Gafisa, Brazil’s Real Estate Giant Embraces Bitcoin May 24, 2022
  • Crypto Lottery: Winner Takes All May 23, 2022

Footer

News

  • Altcoin News
  • Bitcoin News
  • Blockchain
  • Tron News
  • World

Digest

  • Meet the Founder
  • Price Winning Article
  • DeFi
  • Cyber Security
  • Crypto Scam

Industry

  • Project Review
  • Technology
  • Fintech
  • Tron Exchange
  • New in Town

Tron Universe

  • Event and Tron Parties
  • New in Town
  • Tron Tokens

Follow Us

Subscribe US

Copyright © 2022 · Tron Weekly. All Rights Reserved. NOTE: Tron Weekly is an independent crypto news site that adheres to the strict journalism policy anchored on transparency, trust, and objectivity, we have no affiliation with the TRON Foundation, its founder Justin Sun or any other cryptocurrency firm.