Arbitrum, the Polygon competitor, is doing well even as the cryptocurrency market remains under intense pressure. Its DeFi ecosystem has continued recovering in the past few days, pushing it to become a top-ten platform.
Arbitrum DeFi TVL rises
Arbitrum is a leading layer-2 network that makes it possible for developers to supercharge their Ethereum applications. It offers numerous advantages to developers, including making their applications much faster and efficient than those hosted on Ethereum’s mainnet.
Some of its top features are advanced calldata compression, separate contexts for common execution, Ethereum L1 gas compatibility, and interoperability among others.
Arbitrum price has four main big ideas: sequencing, support for Ethereum data structures, separate execution from proving, and optimistic rollup with interactive fraud proofs.
Transactions in Arbitrum are significantly faster and have minimal transaction costs. This explains why the number of applications in its ecosystem is increasing. Data compiled by DeFi Llama shows that the total value locked (TVL) has surged to more than $1.8 billion, which is much higher than the year-to-date low of $776 million.
This growth has been broad across most applications in its ecosystem. For example, GMX has seen its TVL jump to over $812 million while Lodestar Finance has risen to over $138 million. Other top performers in Arbitrum are Uniswap V3, TreasureDAO, Sushi, and StarGate.
TreasureDAO is a notable one since, MAGIC, its native token surged by more than 100% on Monday after several exchanges like Gate.io, Binance, and Huobi listed it.
Therefore, by having its TVL soar, Arbitrum has grown to become the fourth biggest chain in the world after Ethereum, Binance Smart Chain, and Tron.
Is it possible to invest in Arbitrum?
Unfortunately, it is not possible to invest in Arbitrum. That’s because, unlike other chains like Ethereum, BNB Chain, and Solana, Arbitrum does not have a cryptocurrency token. The developers have said that they will not create a token since there was no need for one. In a statement, Ed Felten, its co-founder said:
“There isn’t an Arbitrum token, and we don’t expect to create one. Contracts on Arbitrum can use any Ethereum-based token they want. We decided that we didn’t need to create yet another token.”
Another positive thing about Arbitrum is that the number of transactions is rising. It had 29,898 transactions on Sunday, much higher than the 27k that it handled in the same day last month.
