- Arbitrum has set a new all-time high in the past few days as it emerges as a top Layer 2 (L2) network.
- In addition to rising volumes and value, the Total Value Locked (TVL) has crossed $10 billion.
Arbitrum has emerged as a top layer 2 (L2) network. During this time, its native token ARB has climbed to be one of the best performers in the market as it reached a new all-time high. Furthermore, its Total Value Locked (TVL) has crossed $10 billion. Of note, Arbitrum commands a substantial 49% of the market share as the collective TVL surpasses $21 billion.
In the last 24 hours, ARB has reached a new all-time high after hitting $2.04. This marks a rise of 150% from its all-time low of $0.744925, just 4 months ago. However, after an impressive rally, the token has retraced, falling by nearly 8% to trade at $1.86 at the time of press. This has seen the coin climb in rank and become the 39th largest cryptocurrency by market cap.
The token has further experienced an uptick in trading volume. Santiment showed that the ARB volume was around $1.3 billion on 2nd January. At the time of press, this has further increased to reach over $2.5 billion.
Arbitrum is a roll-up chain designed to improve the scalability of Ethereum. As the network continues to enjoy mass adoption, there is an increased need for faster and cheaper transactions on the network. This is achieved while still benefiting from the security and decentralization of the Ethereum network. Although the L2 network faces stiff competition, it has managed to carve out a significant share of the market.
However, Arbitrum block explorer Arbiscanner on Jan 3rd revealed that Radiant Capital paused its lending and borrowing markets on Arbitrum after receiving reports of a $4.5 million exploit. This temporarily raised alarms for investors and the community but has since been resolved.
Radiant Capital was subject to a flash-loan-based exploit upon launching the new native USDC market on Arbitrum on January 2nd at 06:53:29 PM +UTC, leading to the protocol accruing bad debt in the WETH market totaling about 1.3% of total protocol TVL.
1/10
— Radiant Capital (@RDNTCapital) January 3, 2024
Can Arbitrum Dominate The Layer 2 Ethereum Networks in 2024
Based on the remarkable rise witnessed with the network in recent months, analysts and investors are confident that Arbitrum will dominate layer 2 Ethereum networks in 2024. Ethereum itself faces competition from networks such as Solana, Cardano, and Binance. But over the years, the network has shown great resilience. For developers, its flexibility allows for several functions as well as a security guarantee.
Arbitrum on the other hand faces competition from Polygon, Optimism, ImmutableX, Shibarium, and Base. The success of Arbitrum will be based on development activity as well as network advancements to boost adoption.
