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Arbitrum Records $150 billion in Total Transaction Volume on Uniswap
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Arbitrum Records $150 billion in Total Transaction Volume on Uniswap

2024-05-06 by Ndaman Olayinka 4 minutes read
Arbitrum Records $150 billion in Total Transaction Volume on Uniswap

Arbitrum, the largest layer-2 by Total Transaction Volume (TVL) on Ethereum, has recorded over $150 billion in transaction volume on the decentralized exchange Uniswap, one of the world’s largest decentralized exchanges (DEX) by total value locked (TVL).

According to the blockchain data tracker DeFiLlama, Arbitrum has a total value locked (TVL) of $2.64 billion, making it the largest Layer 2 protocol and the fifth largest protocol overall, behind Ethereum, BSC, Solana, and Tron. Based on the data, as of May 6, Uniswap had $5.54 billion, making it the largest decentralized exchange by TVL.

Uniswap was handling less than $5,000 in swap volume by August 2021. After being implemented on Arbitrum in June 2021 and examining on-chain data, the number has progressively grown over the previous three years.

From then on, they gained momentum steadily during the 2022 cryptocurrency bear market. Interestingly, a notable spike from October 2023 occurred at the same time as the beginning of the cryptocurrency boom, which ultimately helped Ethereum reach over $4,000 in Q1 2024. By the end of April 25, Uniswap had enabled transactions totaling more than $146 billion on Arbitrum by itself.

Increased interest in Decentralized Finance (DeFi) solutions is reflected in the growing swap volume on Arbitrum. Users are increasingly using the well-known DEX on Arbitrum to trade without giving up control of their assets.

Uniswap had a 138% increase in total value locked (TVL) in March, which shows that investors are growing in their belief and reliance on the protocol.

Furthermore, a major factor contributing to Uniswap's explosive growth on Arbitrum is its comparatively cheap transaction costs when compared to the Ethereum mainnet.

The most recent version of the Layer 2 upgrade, named Atlas, was made available in March of this year by Offchain Labs, a major contributor to Arbitrum. In order to reduce Ethereum Layer 2 transaction costs, the upgrade added support for block transactions.

According to a statement by Offchain Labs CEO and co-founder Steven Goldfeder, "the upgraded ArbOS Atlas will significantly benefit the community by providing better transaction pricing."

Arbitrum is the first Layer 2 to cross the DEX threshold, with total swap volume on Arbitrum reaching $150.2 billion as of the beginning of May.

This is also following our earlier report that the premier crypto blockchain network, Bitcoin (BTC), has processed over 1 billion transactions, marking a major milestone after 15 years, 4 months, and 4 days since its launch on January 3, 2009. This historic accomplishment for the biggest and most valuable cryptocurrency in the world was reached on Sunday, May 5, at 9:34 p.m. UTC.

Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.