Arbitrum, an Ethereum layer 2 scaling solution, has for the first time in its history, led in daily volume on decentralized exchanges (DEX), according to recent data from crypto analytics firm DefiLlama. In the past 24 hours, the total value of transactions made on Arbitrum by crypto users reached $1.83 billion, surpassing Ethereum’s 24-hour volume of $1.44 billion. This volume even exceeds the combined 24-hour volume of Solana, Binance Smart Chain, Polygon, Avalanche, Optimism, and zkSync Era.
Historically, Ethereum has been the leader in 24-hour volume, but its position has been recently challenged. Solana, a layer 1 blockchain implementing proof-of-history, surpassed Ethereum’s daily DEX volume for several days in December 2023. Now, less than a month later, Arbitrum has taken the lead. Martin Lee, content lead at on-chain metrics firm Nansen, acknowledged the achievement but expressed the need to see this trend continue over a longer time before giving it significant weight.
The surge in Arbitrum’s volume is likely due to the upcoming Ethereum upgrade known as Dencun, according to Lee. Dencun, set to be activated on several testnets this month, is the first major upgrade to Ethereum since Shapella in April of last year. The upgrade includes EIP-4844, also known as proto-danksharding, designed to scale Ethereum in a decentralized way. This reduces the cost of posting large amounts of data to Ethereum and lowers the operational cost of rollups, making Layer-2 networks built atop Ethereum more cost-effective.
Carlos Mercado, a data scientist at blockchain data firm Flipside Crypto, also noted that Arbitrum has been preparing for Arbitrum Orbit, their competitor to the Optimism ‘Superchain’ thesis, a network of chains that all share Optimism’s open-source development stack. It’s important to note that the surge in Arbitrum’s daily DEX volume is not from the recent memecoin frenzy that has gone viral on other Layer-1 networks such as Bitcoin, Solana, and Avalanche. Memecoins “never took off” on Arbitrum, according to Nansen’s Lee.
ARB, the native governance token for the Arbitrum ecosystem, has slid roughly 11% in the past 24 hours, but has gained nearly 27% in the past seven days to change hands at $1.86, according to CoinGecko. Arbitrum is a sponsor of Unchained.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Martin Lee, Carlos Mercado, Christine Kim |
| Companies | Flipside Crypto, DefiLlama, Unchained, Galaxy, CoinGecko, Nansen |
| Currencies | Era Name Service, Bitcoin, Chain Games, Solana, Avalanche, Arbitrum, Ethereum, Polygon, Optimism |
| Securities | None |
