Arbitrum DeFi TVL Set For Major Growth With Over a Dozen Native DEXes

CryptoMode Arbitrum DEX

Everyone has noted the ongoing growth of the DeFi TVL on Arbitrum. The network approaches its 2021 all-time high again and may surpass it this weekend. Interestingly, there are over a dozen DEXes on the network, confirming strong competition.

Arbitrum Continues To Grow

It is good to see decentralized finance reclaim some of its former glory. After the brutal 2022, overall interest in DeFi rises again. That has brought a lot of momentum to various networks, including Arbitrum. It remains one of the most popular L2 networks on the market today and continues to build strong momentum. Sustaining the growth will be a tall order, though.

One interesting development of the Arbitrum ecosystem is how it has over a dozen decentralized exchanges. That seems rather unusual, as most networks – except Ethereum – have a handful or less. It appears developers are keen on building automated market makers on this technology stack. Popular projects include Camelot, OreoSwap, Zyberswap, Vertex, Saddle, Garbi Protocol, etc. 

It is worth noting several of these protocols are native to Arbitrum, rather than cross-chain options. In addition, the network is home to powerful Ethereum-based protocols like Uniswap V3, SushiSwap, Curve, and Balancer. That should all generate tremendous liquidity, which may explain why the overall TVL has risen strongly in the first few weeks of 2023.

Even though these DEXes compete for market traction, none of the decentralized trading platforms has over $135 million in TVL. That indicates there’s tremendous room for growth, assuming more people provide liquidity across the different trading pairs. That is the case, as most DEXes noted a healthy TVL increase in the past week. Some even gained over 30%, which is rather interesting to behold. 

Derivatives And Lending Remain Kings

The growing DEX competition on Arbitrum is certainly worth keeping an eye on. It is certainly possible for any project to surpass Uniswap V3 for liquidity these days, and ZyberSwap is only $8.5 million behind. As such, it seems likely to assume a native decentralized exchange will enter the TVL top five shortly and may even enter the top three before the end of February.

That said, the derivatives and Lending verticals remain kings for Arbitrum. GMX is the leading protocol by TVL, at $1.03 billion. Radiant, a lending outfit, represents $326,88 million, followed by derivatives platform Gains Network at $190.2 million. 

It is worth noting these platforms all saw a weekly TVL gain from 3% to 48.8%. A lot of liquidity pours into Arbitrum and its DeFi protocols, partially thanks to recent crypto asset appreciation. 

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