Following the top stories in the crypto ecosystem for the week, Ethereum layer-two rollup network Arbitrum One has caught the eyes of speculators by showing a significant growth in breaching and going beyond the $1.5 billion of total value locked (TVL) in protocols using its services on Sept 11, as DeFi degens rushed to invest in the first early farming & agricultural DApps launching on the network. This surge has been shown to grow by roughly 2,300% this past week.
It was suggested that this might be due to the rumor which started on social media (like Twitter) that the protocol intends to issue its token in the coming days. Off-chain Labs launched the second layer to mainnet on Aug 31. (less than two weeks ago) which followed an influx of a $120 million funding round. Arbitrum currently holds 65.7% of all capital locked on layer-two networks, followed by the second-layer decentralized exchange dYdX with 14.6%.
About 80% of Arbitrum’s growth can be attributed to the ArbiNYAN yield farm (related to the Nyan cat meme), as most users are still flocking. This is the first Farming platform, which has lured & attracted investors with multi-thousand percentage returns for staking its native token.
The hype surrounding the ArbiNYAN must have been underrated, as rapid migration of liquidity onto Arbitrum has occurred, impacting the broader DeFi ecosystem. Arbinyan has 1.48 Billion TVL, meaning that almost all of the funds in Arbitrum have been moved to get the astounding yields the farm is offering (3,314.70% APY in the Nyan pool as at the time of writing).
A significant share of the capital flowing to Arbitrum also appears to have come from so-called ‘Ethereum killers’.
Dune Analytics data shared to social media on Sept. 12 indicated that while Arbitrum’s TVL grew by roughly 2,300%, the TVL of bridges to Solana, Fantom, and Harmony had shrunk by 58%. 36%, and 62% respectively that same week. The Arbitrum bridge TVL absorbed the Solana bridge TVL. Arbitrum (Ethereum Layer 2) is the Solana killer.