Arbitrum Leads the Wave of Layer-2 Growth: TVL Surpasses $10 Billion, ARB Price Hits ATH

The Layer-2 network Arbitrum One is demonstrating strong growth, becoming the first L2 project to surpass $10 billion in Total Value Locked (TVL). The price of ARB also recently hit an all-time high (ATH) of $1.94 after a steady climb over nearly a month.

Arbitrum Leads the Wave of Layer-2 Growth: TVL Surpasses $10 Billion, ARB Price Hits ATH

The early days of 2024 are showing the "breakthrough" power of the Layer-2 wave, with most platform coins experiencing significant gains.

According to L2Beat, the TVL of Arbitrum One has increased by nearly 16% to $10.22 billion in just the past 7 days, marking its name as the first L2 network to break the $10 billion mark.

Layer-2 projects ranked by TVL. Source: L2Beat

Considered a counterpart to Arbitrum One, Op Mainnet (Optimism) closely follows with a TVL of $6.34 billion, recording an increase of nearly 10% during the same period.

Arbitrum and Optimism (OP) are clearly leading the Layer-2 race in terms of total locked value, with the TVL of these two networks reaching billions of dollars.

The third-ranked network has a much more "modest" TVL of $748 million. However, this is seen as a proud achievement for Metis, "accelerating" following the announcement of its growth incentives package, surpassing heavyweight competitors such as Base and zkSync Era.

Returning to Arbitrum, ETH and ARB are the assets with the highest holdings on the network, accounting for 30.9% and 23.68% respectively. Following them are stablecoins, making up nearly 30%.

The ARB token has also shown impressive performance. ARB is currently trading around $1.89, a slight decrease after recently setting an ATH at $1.94 on the morning of January 3, 2024.

1-hour chart of ARB/USDT pair on Binance at 12:20 PM on 03/01/2024

Over the past 7 days, ARB has increased by 45% and over 70% in just 14 days. Looking at the 30-day period, the token has also risen by 68%, demonstrating continuous growth throughout the final month of 2023.

The entire cryptocurrency market is turning green due to optimism in the early days of 2024, nearing the deadline for SEC approval of a spot Bitcoin ETF. Other Layer-2 projects are also expected to perform well under the leadership of Arbitrum.

Performance of Layer-2 tokens over a 7-day period. Source: CoinGecko