Arbitrum Records 150 billion Dollar 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).

It’s official: Arbitrum is the first L2 to pass $150B in swap volume 🔷 pic.twitter.com/wwg5hllZ4S

— Uniswap Labs 🦄 (@Uniswap) May 6, 2024

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.

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