Arbitrum One Achieves Historic $10 Billion TVL Milestone

Arbitrum One, the leading Ethereum Layer 2 (L2) network, has achieved a significant milestone by achieving over $10 billion in total value locked (TVL), a 16% increase over the past seven days. This achievement not only highlights the growing interest and trust in Arbitrum One, but also highlights the resilience and potential of the platform following a partial outage on December 15 due to a surge in Bitcoin Ordinals-inspired inscriptions.

Composition of TVL

Arbitrum One’s $10.22 billion TVL shows a diverse asset mix. This includes Ethereum, the native ARB token, and a significant number of stablecoins. Ethereum accounts for 30.9% of TVL, ARB tokens account for 23.68%, stablecoins account for 29.66%, and the remaining 15.76% is distributed to various other assets.

Arbitrum One’s Journey and Funding

Arbitrum One, developed by Offchain Labs, has been a prominent name in the Ethereum scaling solutions space. The platform launched its public mainnet on August 31, 2021., after the optimistic rollup solution is completed. this start It was accompanied by a successful Series B funding round that raised $120 million, led by Lightspeed Venture Partners and with participation from high-profile investors such as Polychain Capital, Pantera Capital, Alameda Research, and Mark Cuban.

Prior to this, Offchain Labs had a significant beta launch in May to allow developers to start building on the platform. This development phase has garnered interest and support from major DeFi protocols, including: ghost, MakerDAO, Chainlink and Uniswap. Additionally, social media network Reddit announced plans to use Arbitrum’s technology for layer 2 rollups.

On the funding side, Offchain Labs’ journey began with a $20 million Series A in April, followed by a $100 million Series B in August, bringing the company’s valuation to $1.2 billion. The Series B round saw participation from a variety of new investors, including Ribbit Capital, Redpoint Ventures, and Mark Cuban.

competitive landscape

Arbitrum’s rise is not without competition. Other rollup solutions such as Optimism are also gaining traction, and the Polygon sidechain maintains a significant presence in decentralized finance with a TVL of approximately $5 billion.

As reported by Blockchain.News, the total value of global decentralized finance (DeFi) has surged to $55.365 billion, a significant increase driven by growing interest in and trust in decentralized finance platforms and technologies. .

The Importance of Layer 2 Solutions

Layer 2 solutions like Arbitrum One play an important role in solving Ethereum’s scalability issues. By providing a platform for faster and cheaper transactions, it significantly improves the user experience and expands the appeal of decentralized applications. These technological advancements are essential to the widespread adoption of blockchain technology and the future of decentralized finance.

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