Arbitrum’s TVL rises 22% after ARB’s 90% drop
CriptoFácil – O , a layer2 smart contract platform for , saw a significant increase in its total blocked value (TVL) following the launch of its native token, the ARB, via airdrop.
According to information from DeFi Llama, Arbitrum’s TVL has risen more than 22% in recent weeks, reaching a peak of more than $2.7 billion on March 22.
The rise in TVL was largely driven by the airdrop launch of the ARB token, which was distributed to users who interacted with the protocol before March 16.
The ARB airdrop, according to the developers, was a way to encourage more users to use the Arbitrum protocol. Token holders can use it to vote on governance decisions and to pay transaction fees on the network.
TVL give a decision
However, shortly after the airdrop was launched, the price of the ARB token dropped by more than 90%. According to data from CoinMarketCap, the price dropped from over $11 on the day of the airdrop launch to under $1 on March 24.
Despite the drop in the price of ARB, the increase in Arbitrum’s TVL suggests that users are interested in using the protocol. The layer2 platform offers faster and cheaper transactions compared to the Ethereum mainnet.
Arbitrum is one of several layer2 platforms that have been launched in recent years to improve Ethereum’s scalability. Other projects include Optimism, StarkWare, and others.
While these layer2 platforms are in their early stages, they can help improve the user experience on Ethereum and help reduce congestion on the network.
Furthermore, with the increase in Arbitrum’s TVL, it is possible that more developers and projects will start using the platform, further driving its growth and adoption.
By CriptoFacil