Arbitrum Becomes First Layer-2 to Surpass $150 Billion USD Volume on Uniswap

Arbitrum has officially crossed the milestone of $150 billion USD in trading volume, making it the most utilized Layer-2 protocol on the Uniswap decentralized exchange (DEX). In a statement released on the evening of May 6th, Uniswap confirmed Arbitrum as the first Layer-2 solution to achieve this feat on its platform.

Uniswap currently stands as the largest decentralized exchange with a Total Value Locked (TVL) of $5.54 billion USD, doubling its wallet count in the past year. As of early May, Arbitrum has accumulated a trading volume of $150.2 billion USD in swaps.

Referencing data from DefiLlama, Arbitrum's Total Value Locked (TVL) stands at $2.64 billion USD, positioning it as the fifth-largest Layer-2 solution in the industry, trailing only Solana, BSC, Tron, and Ethereum.

Fluctuations in TVL across the top 10 blockchains. Source: DefiLlama

Since its inception, Arbitrum has focused on enhancing transaction speed and reducing fees, addressing two of the major challenges facing Ethereum and other networks. The record-breaking trading volume and TVL partially reflect Arbitrum's prominent position within the decentralized finance (DeFi) sector.

However, despite its developmental strides, the price of ARB has not seen commensurate growth compared to other protocols, largely due to Arbitrum's periodic large-scale token unlocking. In the upcoming vesting period on May 16th, hundreds of millions of USD worth of ARB tokens are set to be released into the market.

The token's price has declined by nearly 30% from the previous month, resulting in a market capitalization drop from $4.2 billion USD to $2.8 billion USD. Currently, ARB is trading at $1.05 USD per token, marking a slight 2% decrease over the past 24 hours.

1D chart of ARB/USDT trading pair on Binance. Image captured at 10:25 AM on 05/07/2024