Arbitrum network gained around 17% growth in the total volume locked over last week.
Arbitrum network is an Ethereum dedicated Layer2 scaling solution project. It has Ethereum as a native token on its platform but does not have its native coin like Polygon network which is also a scaling solution project on the Ethereum blockchain network.
At the time of writing this article, the total value locked in the Arbitrum network is $3.12 billion. This total locked value is 17% higher than last week’s located value, while 23% high over last year. With this TVL, Arbitrum is standing at the first position in the crypto industry as an Ethereum scaling solution network.
After Arbiturm, this is DyDx, which is an on-chain derivative project. DyDx is currently holding $976 million TVL. So clearly here, Arbitrum is standing at first rank with a very big difference of more than $2 billion.
These metrics also indicate that transactions in Ethereum are increasing rapidly, in particular in last week’s huge surge seen that resulted in the increment of TVL. Within the last seven days, Transactions surged from 32,113 on Feb. 5 to 73,845 today.
Layer2 scaling solution is need
At present, Ethereum is the biggest smart contract platform, which is based on traditional proof-of-work Consensus.
Right now transaction fees on the Ethereum network are more than the Bitcoin network, no matter how much faster and scalable over the Bitcoin network.
Once, Ethereum co-founder Vitalik Butterin said that developers are working to shift Ethereum from pow to pos but it will not result in huge Scalability and reduced gas fees, so in the next more than a couple of years, we need to remain dependent on the Layer2 scaling network.
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