Ethereum

Arbitrum

Uniswap

DeFi

Billion

<p>Arbitrum set new standards in DeFi with $20 Billion in monthly trading volume on Uniswap.</p> 
<p>With this milestone, it solidified itself as a leading Layer 2 solution that enables faster, cheaper transactions than Ethereum Layer 1.</p> 
<p>This record was a testament to the fast-growing reliance of DeFi on scalable technology.</p> 
<h2 class="wp-block-heading" id="h-arbitrum-s-20b-volume-record-marks-a-new-era-for-layer-2-scaling"><strong>Arbitrum’s $20B Volume Record Marks a New Era for Layer 2 Scaling</strong></h2> 
<p>As the first Layer 2 (L2) scaling solution to surpass the $20 Billion in monthly trading volume on the Uniswap protocol, Arbitrum set a new bar of DeFi activity.</p> 
<p>The boost, which extended an uptick that saw <a href="https://www.thecoinrepublic.com/2024/10/16/stripe-partners-with-paxos-to-launch-stablecoin-payments-platform/">Arbitrum</a> rise to the forefront of L2 networks powering high trading volume, reflecting the network’s faster, more cost-effective transactions compared to other L1s such as Ethereum.</p> 
<p>This showed a rising pattern among clients moving toward Layer 2 arrangements for scaling decentralized applications while keeping security and decentralization intact.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large is-resized">
  <img loading="lazy" decoding="async" width="1024" height="583" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-1024x583.png" alt="" class="wp-image-864826" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-1024x583.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-300x171.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-768x437.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-150x85.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-696x396.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94-1068x608.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-94.png 1434w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <em>Monthly Uniswap Protocol Volume on ARB | Source: X</em>
  </figcaption>
 </figure>
</div> 
<p>According to Dune Analytics data, Arbitrum’s volume steadily climbed and increased significantly in the past year.</p> 
<p>The successful attraction of liquidity and activity from institutional and retail participants shows a sharp increase in trading activity.</p> 
<p>Its deep integration with the popular decentralized exchange Uniswap powered up its transaction volumes.</p> 
<p>With that record-breaking figure, Arbitrum further solidified its place as the leading Ethereum ecosystem alternative for scalability and cheaper fees.</p> 
<p>While the use of Arbitrum is successful, it could also drive more adoption of other scaling technologies and potentially lead to more innovative use within DeFi.</p> 
<p>In a world where Ethereum’s network is becoming congested and gas fees are at an ATH, the role of L2 solutions such as Arbitrum will only grow, so the protocols built on top of ETH can remain accessible and viable for a global user base.</p> 
<p>This achievement reconfirms the importance of L2s in the next leg of blockchain adoption.</p> 
<h2 class="wp-block-heading" id="h-analyzing-open-interest-and-volume-for-price-insights"><strong>Analyzing Open Interest and Volume for Price Insights</strong></h2> 
<p>When looking at open interest, was clearly extremely volatile, as the peaks and troughs in open interest were often dependent on the nature of market sentiment and therefore typical trader behavior.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full is-resized">
  <img loading="lazy" decoding="async" width="628" height="187" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-95.png" alt="" class="wp-image-864831" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-95.png 628w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-95-300x89.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-95-150x45.png 150w" sizes="auto, (max-width: 628px) 100vw, 628px">
 </figure>
</div> 
<p>Open interest often rise if there are increased market participants, opening new positions, and usually falls if positions are being closed through either profit-taking or waning confidence.</p> 
<p>What’s more, periods of strongest trading activity tend to correspond with the highest levels of open interest, demonstrating a correlation between greater positioning and greater market participation.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full is-resized">
  <img loading="lazy" decoding="async" width="626" height="185" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-96.png" alt="" class="wp-image-864838" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-96.png 626w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-96-300x89.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-96-150x44.png 150w" sizes="auto, (max-width: 626px) 100vw, 626px">
  <figcaption class="wp-element-caption">
   <em>ARB volume | Source: Coinglass</em>
  </figcaption>
 </figure>
</div> 
<p>The volume began to spike noticeably, especially at times when there has been large price movement or market events, which shows periods of increased investor interest in the currency.</p> 
<p>Spikes in trading volume often correlated with spikes in open interest, suggesting large transactions or new positions were responsible for most market activity.</p> 
<p>Higher trading volumes usually reflected stronger and trendy market strength.</p> 
<h2 class="wp-block-heading" id="h-is-the-transaction-surge-behind-injective-s-price-rally"><strong>Is the Transaction Surge Behind Injective’s Price Rally?</strong></h2> 
<p>According to IntoTheBlock data, the chart depicted the number of big transactions and price actions of <a href="https://www.thecoinrepublic.com/2024/08/22/uniswap-arbitrum-labelled-as-securities-by-this-firm-why/">Arbitrum</a>.</p> 
<p>There were 585 large transactions in the last 24 hours of the charted period as the market once again remained active.</p> 
<p>The analysis indicated that these variables were characteristically dynamic, exhibiting strong oscillation in transaction activity while price increased gradually with time.</p> 
<p>There are often large transaction peaks during the important movements of price, and it seems that institutional or large-scale investors have a strong influence on changing the movement of the market.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full is-resized">
  <img loading="lazy" decoding="async" width="629" height="275" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-97.png" alt="" class="wp-image-864848" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-97.png 629w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-97-300x131.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-97-150x66.png 150w" sizes="auto, (max-width: 629px) 100vw, 629px">
  <figcaption class="wp-element-caption">
   <em>Number of Large Transactions | Source: IntoTheBlock</em>
  </figcaption>
 </figure>
</div> 
<p>Transactions on some large transactions tended to be volatile, with very large surges noted, for example, with a 7 day high at 706 transactions.</p> 
<p>The 7-day low for last month had just 206 transactions. Even amidst these swings, however, transaction volumes followed a general increase at the conclusion of the period, in step with the rally of the crypto.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/12/04/arbitrum-becomes-the-first-l2-to-hit-20b-on-uniswap/">Arbitrum Becomes The First L2 To Hit $20B On Uniswap</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Arbitrum Becomes The First L2 To Hit $20B On Uniswap

Table of Contents

Thecoinrepublic.com

Other articles published on Dec 5, 2024

Ski Mask Dog Price Prediction: SKI Soars To New All-Time High After 1,038% Weekly Gain, But Exper...

Tech giants remit ₦2.55T

Market Participants Face Disappointment in Altcoin Performance

Bitcoin Hits $100K: MicroStrategy Gains $16B in Profit

Trump’s Team Discusses Potential White House Crypto Role Amid Growing Industry Influence

MEXC Referral Program Upgrade: Bigger Rewards, Better Benefits!

Join our free newsletter for daily crypto updates!