Source: Arbitrum
Ethereum layer 2 network Arbitrum has recorded high transaction volumes at the start of the year as well as its total value locked (TVL) tapping $2.5 billion.
On-chain data shows the firm’s bullish performance in the last week of 2023 and the early days of 2024 with surging transaction volumes and increased decentralized finance (DeFi) activity.
On Jan 3, its native token ARB spiked over 10% to trade close to the $2 mark with bulls anticipating a price surge as onchain activity ramps up. In the last seven days, the token has recorded a 26% increase and a massive 73.91% growth in the last 30 days.
Amidst the price surge, its TVL is now above $2 billion as volumes on decentralized applications (dApps) moved past $900 million. The platform has also recorded a 24-hour inflows of $52.16 million with GMX leading the pack in TVL.
New market data from DeFiLlama points to Arbitrum’s DApps increasing TVL rising by 1 billion since October. The recent inflows have led commentators to toe the line of the wider industry’s uphill climb as a significant factor for the bullish activity.
The last quarter of 2023 was bullish for Bitcoin (BTC) and a plethora of altcoins based on several factors including increasing institutional investor appetite as they await a spot BTC ETF approval by the Securities and Exchange Commission (SEC).
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Described as a new window, several wealth managers explained that trillions are on the cusp of entering the market leading to a bullish drive across all sectors. Firms like Matrixport projected a bullish BTC price of over $50,000 at the end of January as the traders kept up momentum.
ARB outpaces top assets
Aside from BTC, altcoins like Ethereum (ETH) recorded growth in the later parts of the year after struggling with its institutional products at the start of the year. A key point is that the ARB token has outpaced other assets in the past days staying strong with its rising transaction volumes.
Other reasons for the surge of the asset could be linked to its developer incentives which have in turn led to wider community participation. In October, the network distributed $40 million worth of ARB tokens to applications on its ecosystem with GMX getting the larger share.
According to some developers, the surge of the token and success of the overall network comes as the platform brings the Ethereum model with significantly lower transaction fees and ensures scalability.
With about 470 dApps on the network, increased on-chain movement could mean more growth for the platform extending its current lead above competitors.
Despite its recent successes, it faced a downtime on Dec 15 before a subsequent fix was implemented.
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