Why does Arbitrum TVL lead in Layer 2?

Arbitrum is one of Ethereum's Layer 2 networks, and since its release has attracted a large number of cryptocurrency users and parties. According to Footprint Analytics data, as of December 8, 2021,Arbitration accounts for 41.88% of all Standard 2 TVL., with a total TVL of $ 2.25 billion, ahead of TVL on multilayer networks 2.

Data source: Footprint analysis - Percentage of each layer 2 TVL

Given the entire upgrade process 2, Arbitrum announced all the announcements of the main network on September 1, 2021, which was too late compared to most other phases 2, but the Arbitrum TVL climbed in arrow, far beyond expectations. . . . .

Data Source: Footprint Analytics - Part 2 of Development by TVL

What sets Arbitrum apart from the many Layers 2? This article looks at three things one by one.

Find out why Arbitrum leads

Migration low-tech

random sivSolve optimistesCompared with the complex process of ZK winding technology, it is more popular among manufacturers in a short time.

Arbitrum is now the best Layer 2 solution with Ethereum EVM and preferably for DeFi applications as it allows developers to easily migrate existing Ethereum processes without having to write numbers, reducing construction costs and time costs. . Arbitration chain. In the long run, however, the ZK stacking network can catch up faster and more securely.

low fuel cost

Arbitrum processes 40,000 requests per transaction, which is more than the 15-30 Ethereum requests.It reduces network connectivity, accelerates costs and lowers transaction costs.. According to external data, Arbitrum's exchange rate is 1.8 Gwei and Ethereum's exchange rate is 64 Gwei, which is almost 36 times that of Arbitrum.

An open ecological project: the blessing of the Degen Tugou project

A lot of people may wonder why this is not a good idea in a network like this, which always uses good solutions.

Vim yog Arbitrum launch strategy.—— We achieved our goal of participating in over 400 DeFi projects before the opening, and at the start of our launch there were already many projects online at the same time. This means that users can accomplish many tasks in the ecosystem. Optimistic uses a free ledger system and only transactions that have passed the free screen can be sent to the mainnet.

Due to Arbitrum's bulk delivery, it wasn't the Army's DeFi protocol that led to the first Arbitrum, but more roads and mines. Due to the high income of the Tugou project, the participation of various investors is also very high, which has attracted the startup of Arbitrum assets and consumers.

The development of TVL at the origin of Arbitrum comes mainly from ArbiNYAN. ArbiNYAN made marketers promise tokens to people with thousands of percent return of content. The mines are ugly, but most importantly, they should not succeed after the success of the mines, and it can be said that they have formed a base for new breeding.

About the Arbitrum ecological project

Layer 2 leader Arbitrum said data from Footprint Analytics shows that the number of online jobs is not very high at 44. Among them, DeFi infrastructure types are the main ones such as DEX , Lending and Asset. Among them, TVL on DEX represents 56%, Real Estate 18% and Lending 17.8%.

Data source: Footprint Analytics - Various DeFi functions provided by Arbitrum

If you look at the TVL rankings on various DeFi projects, the Tugou project is not in the top five, mainstream projects are on the rise, and TVL is no different. Among them, Curve's TVL was the first with $ 420 million.

Data source: Footprint Analytics - Top 5 DeFi projects on Arbitrum TVL

concludes

Arbitrum, which plays a key role in Ethereum's expansion, was valued at $ 1.2 billion out of $ 2 trillion out of AB's $ 124 million.

Currently, Arbitrum has not announced the results, and the founder of the Offchain Labs development team has said there are no plans to announce the results in the near term.

Currently, Arbitrum is in its infancy and is expected to continue to push hard on home improvement, attracting more developers and attracting more investors. Let's wait and see what Arbitrum's next development looks like. a