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Arbitrum One, a Layer 2 answer for Ethereum, has achieved a serious milestone with its whole worth locked (TVL) surpassing $10 billion, whereas its token value breaks a brand new file excessive.
The whole worth locked on Arbitrum soared above $10 billion on January third, marking a 430% enhance year-to-date, in line with knowledge from L2BEAT. With this milestone, Arbitrum has change into the primary layer 2 community to cross the $10 billion threshold.
Optimism, Arbitrum’s layer 2 counterpart, follows intently behind with $6.3 billion in TVL. Solely these two Layer 2 networks have TVLs exceeding a billion {dollars} and at present dominate the Layer 2 market.
Layer 2 protocols have change into extra prevalent lately on account of their advantages like low transaction charges and excessive transaction speeds. The numerous enhance in TVLs on each Arbitrum and Optimism suggests a rising adoption of Layer 2 options. Particularly, Arbitrum helps over 400 decentralized purposes (dApps), per DeFiLlama.
Along with the TVL file, Arbitrum has notched one other milestone as its ARB token reached a brand new all-time excessive of $2.09 earlier at present, in line with knowledge from Coingecko.
One of many key drivers behind the sturdy efficiency is Ethereum’s upcoming Dencun improve, which is anticipated to launch in Q1/2024. Notably, Dencun will introduce EIP-4844 (Proto-Danksharding) – an answer to considerably scale back transaction charges on Optimistic Rollups like Arbitrum and Optimism by as much as 8 instances.
Notably, Arbitrum is gearing as much as unlock over $1 billion value of ARB tokens in March, an vital occasion that would affect its liquidity and market dynamics.