Ethereum layer-two rollup network Arbitrum One is beginning to see significant growth, with its total value locked (TVL) surging by roughly 2,300% this past week.
According to L2beat, an analysis platform comparing layer-two protocols, Arbitrum’s TVL tagged an all-time high of $1.5 billion on Sept. 11 as DeFi degens rushed to invest in early farming DApps launching on the network.
Off-chain Labs launched Arbitrum to mainnet following a $120 million funding round on Aug. 31. Since then, Ethereum transaction fees have surged to their near-record levels, driving a migration of liquidity to layer-two scaling solutions and rival layer-ones.
Arbitrum currently holds 65.7% of all capital locked on layer-two networks, followed by the second-layer decentralized exchange dYdX with 14.6%.
Much of Arbitrum’s growth can be attributed to the ArbiNYAN yield farm, which lured investors with multi-thousand percentage returns for staking its native token.
However, bullish sentiment surrounding ArbiNYAN appears to have been short-lived, with its native token shedding more than 90% of its value in