Ethereum layer-two scaling solution Arbitrum has hit a record high of $1.5 billion in total value locked (TVL) in just less than two weeks since its mainnet had been launched.
According to L2beat, a data analysis platform that compares layer-two protocols, Arbitrum's TVL has breached a new all-time high of $1.5 billion on Sept 11 just less than two weeks after its mainnet launch.
Apparently, the platform recorded a higher influx amid users flocking to its yield farming platform called the ArbiNYAN yield farm in the hopes of reaping the benefits out of its thousand percentage returns for staking its native token.
With the yield farming platform having 1.48 Billion TVL, this signifies that almost all of the funds in Arbitrum have been moved to get the staggering yields the farm is currently offering with a 3,314.70% APY in the Nyan pool at the time of writing.
While Arbitrum’s TVL has grown by roughly 2,300%, the TVL of bridges to Solana, Fantom, and Harmony has shrunk by 58%. 36%, and 62% respectively the same week, according to data from Dune Analytics.
Another reason for a larger part of the funds being moved to the Arbitrum layer includes the rumor of a possible native token airdrop spread in social media sites like Twitter with popular crypto influencer Cobie even tweeting about it to say:
“ETH L2s (Optimism/Arbitrum) almost definitely gonna do a dydx/uniswap style retrospective token drop right?”
However, Arbitrum clarified that there isn’t any native token issuance, and “anything claiming to be an official Arbitrum token is a scam.”
On Aug. 31, Off-chain Labs launched Arbitrum to mainnet following a $120 million funding. Since then, Ethereum transaction fees have surged to their near-record levels, driving a migration of liquidity to layer-two scaling solutions and competitor layer-ones.
Currently, Arbitrum holds 65.7% of all capital locked on layer-two networks, followed by the second-layer DEX platform dYdX with 14.6%.