The weekly decentralized exchange (DEX) volume on Arbitrum, a Layer-2 scaling solution for Ethereum, has hit a record high. This surge in volume highlights the growing demand for efficient and cost-effective blockchain solutions. With more users opting for DeFi platforms, Arbitrum provides a faster and cheaper alternative for processing transactions. Therefore, the latest milestone achieved by Arbitrum signifies a promising future for decentralized finance applications and the wider blockchain industry.
Arbitrum’s Decentralized Exchange Records All-Time High Transaction Volume
Arbitrum, a layer2 (L2) scaling solution based on Ethereum, recorded an all-time high (ATH) transaction volume on its decentralized exchange (DEX) for the second consecutive week, according to data from DeFillama. Over the past seven days, DEX transactions increased by 32.41%, reaching $4.34 billion, which is significantly higher than Binance Smart Chain’s volume. The top five DEXs on Arbitrum were Uniswap, SushiSwap, ZyberSwap, Camelot, and Balancer, and in the last seven days, trading volume on these platforms grew by an average of over 40%. Meanwhile, Uniswap remains the dominant DEX platform on Arbitrum, accounting for 48% of all trades on the L2 network.
Rising Total Value Locked and Stablecoin Inflows on Arbitrum
Additionally, the total value of assets locked on Arbitrum has risen by more than 20% in the last seven days, amounting to $3.85 billion, with 2.15 million ETH tokens locked on the network. The platform’s daily transaction per second also rose by 80.82% to 10.82, indicating high network activity on the L2 network. GMX is currently the dominant DeFi protocol on Arbitrum, controlling 28.27% of its total TVL. At the same time, the L2 solution has continued to witness an increase in its stablecoin inflow, with the USD inflow climbing 9% to $1.59 billion, despite recent issues plaguing its dominant stablecoin on its ecosystem, USD Coin (USDC). During the period, there was more inflow of Tether’s USDT and algorithmic stablecoin DAI into the network as against USDC.
Conclusion
In conclusion, Arbitrum’s DEX has been experiencing a surge in transaction volume, indicating increasing adoption of the L2 scaling solution on Ethereum. Its significant TVL growth and stablecoin inflows complement this progress, making Arbitrum a promising platform that can contribute significantly to the development of DeFi on Ethereum. Investors should keep an eye on the progress of Arbitrum and the projects related to it, as these may provide good investment opportunities in the future.