Arbitrum’s TVL rises to $1.5B after DeFi degens into ArbiNYAN

Despite the fact that Ether has fallen more than 90% in 24hrs, more than $1 billion is still locked up in the ArbiNYAN yield farms.
The Ethereum layer-two rollup network Arbitrum one is starting to see significant growth. Its total value locked (TVL), has risen by approximately 2,300% over the past week, according to L2beat. This was due to DeFi degens rush to invest in DApps launching early on the network. Arbitrum was launched to mainnet by Off-chain Labs following a $120million funding round on August 31. After a $120 million funding round on Aug. 31, Off-chain Labs launched Arbitrum to mainnet. At the time of writing, NYAN was trading at just roughly $0.60 after sinking as low as $0.45, with current prices down 92% from its Sept. 12 peak of $7.85 according to Defined.ArbiNYAN/USDDespite hype for ArbiNYAN appearing to have fizzled out fast, the rapid migration of liquidity onto Arbitrum impacted the wider DeFi ecosystem.One savvy DeFi farmer noted that the sudden withdrawal of roughly 200,000 Ether (worth $660 million) from Curve’s stETH pool since ArbiNYAN’s launch had created an arbitrage opportunity through slippage. A large portion of capital flowing to Arbitrum appears to have been sourced from so-called “Ethereum killers”. Dune Analytics data shared to social networks on Sept. 12 showed that Arbitrum’s TVL increased by approximately 2,300%, but the TVL for bridges to Solana and Fantom had shrunk to 58%. 36%, and 62% respectively that same week.The Arbitrum bridge TVL absorbed the Solana bridge TVLArbitrum (Ethereum Layer 2) is the Solana killer– James Spediacci (@JamesSpediacci) September 12, 2021

Related: Ethereum layer twos are reportedly processing more transactions that BitcoinFunds. Transactions withdrawn from Arbitrum back into the Ethereum mainnet take seven working days to process. All Ether deposited will remain on Arbitrum until it can be withdrawn. DefiLama reports that $1.55 billion is still locked into ArbiNYAN despite a collapse in the NYAN token price.

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