- Ethereum gas cost hit between 100-200 gwei several times this year due to NFT usage boost.
- The launch of Arbitrum and Optimism, alongside other Layer 1 protocols, likely to drive innovation in dApps.
- Launching on Arbitrum first boosts scalability and reduces cost for apps with fee-sensitive users.
Arbitrum has emerged as a leading scaling solution for decentralized applications, offering 10 to 100x improvements in scalability depending on the transaction. The rising number of smart contracts on optimistic rollups are likely to cut Ethereum gas fees.
$2 billion flow into Ethereum layer 2 scaling solution Arbitrum
Within the past week, nearly $2 billion poured into Arbitrum due to rising interest in ArbiNYAN, that gained popularity as the first farming platform on the optimistic rollup.
On September 13, the farming token hit $1.48 billion in total value locked, meaning nearly all funds on the Arbitrum network were redirected to ArbiNYAN for yield rewards.
After a massive spike in ArbiNYAN’s TVL, the interest in the token dropped substantially. The token plunged nearly 90% within 12 hours, and it is trading at $1.61 at the time of writing.
With Arbitrum One’s mainnet launch, two decentralized exchanges – Uniswap and SushiSwap – have joined the optimistic rollup.
The rollup was conceived as a project that would ease the network congestion on Ethereum and reduce the transaction fees. Since its launch on August 31, Arbitrum has facilitated smooth runs for ETH-based projects, lending protocol Aave and decentralized exchange Uniswap.
Nick Chong, digital asset manager at ParaFi Capital, an alternative investment fund focused on blockchain and decentralized finance markets, shared his thoughts on Arbitrum’s growth story:
The biggest crypto story of the past few days has been the growth of Arbitrum.
Yield farms have skyrocketed the Ethereum L2's TVL beyond $1 billion.
Everyone's talking about it but what is Arbitrum anyway?
Let's get into it pic.twitter.com/53I8y2UNJr
— Nick Chong (@n2ckchong) September 13, 2021
