Arbitrum’s TVL is increasing thanks to ArbiNYAN. by 2,300% to $ 1.5 billion

Arbitrum, an Ethereum Layer-2 scaling solution, is growing significantly, with Total Value Locked (TVL) increasing by around 2,300% over the past week.

Arbitrum’s TVL hits all-time high

follow L2beat, an analytics platform that specializes in comparing Layer 2 protocols, Arbitrum’s TVL hit an all-time high of $ 1.5 billion on September 11th.

Source: L2beat

Host company Offchain Labs launched the Arbitrum mainnet on August 31st after a $ 120 million financing round.

Arbitrum currently holds 65.7% of the total blocked capital in the Layer 2 network, followed by the DEX exchange dYdX with 14.6%. Much of Arbitrum’s growth is due to ArbiNYAN Yield Farming, which is attracting investors with thousands of percent returns on staking tokens.

However, the optimistic mood surrounding ArbiNYAN seems to be short-lived. The price of the native token has fallen more than 90% in less than 12 hours. At the time of writing, NYAN is trading at $ 0.9 after falling to $ 0.45. Prices are now down 86% from the September 12th high of $ 7.85.

ArbiNYAN / USD 4-hour chart | Source: TradingView

Despite the hype surrounding ArbiNYAN that has gone up in smoke, the impact on the vast DeFi ecosystem as liquidity rapidly shifts to Arbitrum is still there.

Meanwhile, some argue that the sudden withdrawal of 200,000 ETH (valued at $ 660 million) from Curve’s stETH pool has created an arbitrage opportunity since ArbiNYAN was launched. A significant part of the capital flowing into Arbitrum also seems to come from the so-called “Ethereum destroyer”.

According to Dune Analytics data as of September 12, Arbitrum’s TVL increased about 2,300%, while the TVL of the bridges with Solana, Fantom and Harmony decreased 58%, 36% and 62% respectively this week. It takes seven days to process funds withdrawn from Arbitrum back to the Ethereum mainnet.

All deposited ETH will remain with Arbitrum for a period of seven days until the withdrawal is approved by the system. At the time of writing, DefiLama reports that despite the falling NYAN token price, $ 1.55 billion is still locked in ArbiNYAN.

We invite you to join our Telegram for faster news: https://t.me/coincunews

mango

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page