A Total Value Locked of over $2 billion for Arbitrum, a Layer 2 solution for Ethereum, is an impressive figure that signals significant traction and user trust in the platform. Given that Arbitrum aims to scale Ethereum by handling transactions off the main Ethereum chain, high TVL suggests that users are actively utilizing its scalability benefits and reduced gas fees.
On-chain activity for Arbitrum would ideally be gauged by not only the volume and diversity of transactions occurring on the network but also the number of unique wallets interacting with it, and the number and variety of DApps being deployed on its platform.
The fact that it is attracting significant liquidity could also suggest that transaction times are quicker and fees are lower compared to the Ethereum mainnet, a crucial advantage in a competitive DeFi landscape. Show Less
