Mc Kenna, an angel investor, recently highlighted Arbitrum's native token, ARB, as the largest portfolio in his cryptocurrency holdings. This optimistic rollup layer-2 has been gaining immense traction due to its ability to quickly scale the Ethereum (ETH) blockchain, the highest total value locked (TVL) out of any DeFi protocol, and a generous EIP-4844 catalyst. Research conducted by the investor shows that total TVL for ETH, ARB, and Optimism (OP) was 56.91%, 0.91%, and 0.18%, respectively, as of January 2022. ARB has also seen a 5.56x increase in dominance since then. Network activity and user engagement on Arbitrum have also been on the rise. From 222.7k to 1.45 million, the 7-day rolling transaction count has noticeably increased. Not only has it flipped Ethereum’s layer one transaction count, the number of active wallets has also gone up from 35.5k to 307k. The list of top ten protocols on ARB by TVL reveals the largest gas-consuming entities to be Gains Network (GMX), Uniswap (UNI), Rari Capital (RDNT), and Stake DAO (STG). On the other hand, a no-team unlock until March 23rd, 2024 could also be considered a driving factor behind the growing number of users.

Kenna's predictions for the future of Arbitrum are optimistic. At the current rate of growth, ARB could be headed for even greater heights in the coming months. It will be interesting to observe the success of the platform that has recently gained notoriety for being the hosted blockchain for decentralized finance (DeFi) protocols. In the hopes of sparking more adoption, the Arbitrum team has hinted at future projects and protocols that are in the works, with the potential of more users and liquidity culminating in an even more prosperous crypto upheaval.



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