Arbitrum One Becomes First Ethereum Layer 2 Network to Surpass $10 Billion TVL

Arbitrum One's total value locked (TVL) witnessed a remarkable increase of 15.9%, reaching a milestone of $10.22 billion in the last seven days, making it the first Layer 2 (L2) network. to surpass the $10 billion TVL mark.

The achievement follows an incident on December 15, in which Arbitrum One faced a two-hour partial outage due to a surge of bitcoin Ordinals-inspired signups that caused a sequencer shutdown to be triggered.

Arbitrum One Masters ethereum Layer 2 TVL

According data According to L2Beat, the total TVL for ethereum Layer 2 networks has reached $20.82 billion, with Arbitrum One contributing significantly by accounting for 48.03% of the total.

Arbitrum currently holds a diversified asset portfolio with 30.9% in ethereum (eth), 23.68% in its native governance token ARB, 29.66% allocated to stablecoins, and the remaining 15.76% distributed among various other assets. Notably, the ARB token has recorded a 14.3% increase in value in the last 24 hours, according to Coingecko. data.

Arbitrum One's success can be attributed to its ability to replicate the ethereum experience while offering substantially lower transaction costs. This profitability has attracted a considerable number of decentralized applications (dApps), with approximately 470 currently deployed on the network.

The implementation of the ARB token, which serves as a governance token, has significantly contributed to the growth of the platform. Governance tokens allow their holders to actively participate in decision-making processes related to the development and policies of the platform, thus encouraging greater user participation within the ecosystem.

Additionally, the Arbitrum One network has a well-established Security Council, a testing system in place and operational, and accepts evidence of fraud from a minimum of five external actors. Furthermore, the platform offers a 7-day exit window without relying on an authorized operator in case of an unpopular update by actors with more centralization than a security council.

Arbitrum One on upward trajectory after disruption

Arbitrum One faced downtime on December 15, which was classified as a “major outage” on the board. An investigation was initiated to identify the root cause and implement a solution.

Before the outage, Arbitrum's Layer 2 network had processed more than 22.29 million transactions, l2beat reported, and had a total value locked of $2.3 billion, according to data from DefiLlama.

The Dec. 15 incident was not the first time Arbitrum faced disruptions. In June 2023, the DeFi Layer 2 network was paralyzed for over an hour due to a bug in its sequencer. The bug caused the sequencer to roll back batches on-chain, leading to the sequencer's Ether (eth) depletion. The developers intervened by manually resetting the sequencer, fixing the error, and restoring normality to the Layer 2 network.

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