Ethereum Layer-2 TVL breaks $3bn barrier

By September 14, 2021Layer2
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The total value locked (TVL) on Ethereum Layer-2 solutions has breached the $3bn barrier as DeFi ‘degens’ and Ethereum enthusiasts seek lower gas fees and lucrative DeFi opportunities.

According to data from L2Beat – an L2 comparison platform – the total TVL on Layer-2 solutions now stands at more than $3bn, with Arbitrum contributing to $2.2bn – almost 75% – of the total TVL. Data also shows that the daily transaction volume was about 267k yesterday – a growth rate of over 250%.

Most of the capital was deposited to the Arbitrum mainnet via the Arbitrum bridge over the previous weekend, with the TVL jumping a considerable amount from $980m on Friday to more than $3bn today.

Arbitrum has seen an incredible surge in deposits on its bridge, which allows users to deposit Ethereum via Metamask to the Arbitrum mainnet. Data from Dune analytics shows that the TVL of the Arbitrum bridge has now ported close to $2.2bn in assets and has recorded a seven-day change of 2,457%

Users can deposit funds from Layer-1 to Layer-2 solutions via ‘bridges’, which simply connect assets like ETH, WBTC or stablecoins to the solutions mainnet. Currently, the funds cannot be bridged back until seven days later.

Additional data shows that across all bridge deposits made, ETH and WETH have contributed to 37% of the value ported over, equalling an estimated $2.6bn. Being an Ethereum Layer-2 solution, and with most projects using ETH as the major currency for determining yields and swaps, it’s estimated that a vast majority of assets bridged via Arbitrum have been ETH or WETH.

Much of the TVL on Arbitrum appears to be secured via ArbiNYAN, a yield farming platform that is currently providing DeFi degens with extremely high yields and farming opportunities.

Based on data from DefiLlama, ArbiNYAN secures more than $1.4bn in ETH and its native token NYAN, which equals almost 50% of all TVL on Arbitrum.

Additional data from DeFiLlama shows that ArbiNYAN dominance sits at a staggering 88% and remains the leading project on Arbitrum. Surprisingly, the TVL of ArbiNYAN far eclipses that of the UniSwap and SushiSwap protocols on Arbitrum, which only secure $27m and $21m respectively.

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