Arbitrum (ARB) Dominates the Ethernet Layer 2 Network

-Arbitrum’s Decentralized Exchange (DEX) trading volumes are surging significantly, outpacing the major blockchains.

-The platform’s success is attributed to its cost-effective transaction fees, making it an attractive option for cryptocurrency investors.

-Arbitrum’s impressive performance includes locking in an all-time high total value of $2.64 billion as well as significant price gains.

Arbitrum is a Layer 2 network built on the Ether blockchain and is witnessing strong performance as the new year approaches. Notably, the platform has seen a significant rise in trading volume and the valuation of its native token, ARB.

Indeed, this positive momentum bodes well for Arbitrum’s bright trajectory in the early part of the year. Jasminer

Arbitrum’s Thriving DeFi Ecosystem

DeFiLlama’s on-chain data shows that over the past week, decentralized exchanges (DEX) on the Arbitrum network have surpassed the trading volume of other blockchains, including CoinSmart, Solana, and Polygon, and notably, on January 5, DEX trading on Arbitrum briefly surpassed that of the main Ether network, a noteworthy milestone. a noteworthy milestone.

Much of this achievement can be attributed to the surge in transaction fees as cryptocurrency investors capitalize on the efficiency of the online economy.

According to L2Fees, Arbitrum is one of the most economical networks to trade on, with an average fee of $0.26. In stark contrast, the average transaction fee on the Ether network is over $5. This could be the reason for the significant increase in DEX trading volume on Arbitrum.

Top 5 Chains by Transaction Volume. Source: DefiLlama

While Ether has regained the lead in DEX transaction volume, the data highlights the rapid growth of the Layer 2 blockchain since its inception.

Additionally, L2Beat’s on-chain data shows that Arbitrum’s average daily transaction volume is 12.85 transactions per second, placing it among the top three Layer 2 networks based on Ether. It trails only zkSync Era’s 18.34 transactions per second and Ether’s 14.00 transactions per second. This reflects the tremendous traction Arbitrum has gained in the competitive landscape for Layer 2 solutions.

Total Locked-in Value Soars

The surge in DEX transaction volume and increased network activity has led to a surge in the total value of assets locked down (TVL) within the blockchain, a key measure of capital invested in blockchain or decentralized finance (DeFi) protocols.

So far this year, net blockchain flows have grown significantly, exceeding $250 million. This surge has pushed Arbitrum’s TVL to an impressive all-time high, reaching $2.64 billion on January 12th.

Arbitrum’s TVL. source: DefiLlama

Meanwhile, Arbitrum’s ARB has also been a notable performer, up more than 20% this year.ARB has outperformed leading cryptocurrencies such as Bitcoin and Ether.ETC Miner

However, following the recent downturn in the wider crypto market, ARB tokens have faced significant repercussions, dropping around 10% to $2.13 at the time of reporting.