5 Insane Facts About Arbitrum you Need to Know

Arbitrum is the largest Layer 2 solution for Ethereum, making it a very important part of the EVM world.

Last week, we proudly announced the integration of Arbitrum, the leading Ethereum Layer 2 (L2) solution, into the NuFi wallet. This integration marks a significant milestone for us and our users, as Arbitrum offers unparalleled benefits in terms of speed, cost, and scalability. Here, we delve into five incredible facts about Arbitrum that highlight why this L2 solution is a game-changer in the world of blockchain and cryptocurrency.

1. Arbitrum: The Largest Layer 2 Solution for Ethereum

Arbitrum has established itself as the largest Layer 2 solution for Ethereum by all major metrics. As of now, Arbitrum boasts a market cap of $2.49 billion, with a fully diluted market cap of $7.71 billion.

Related article: 5 Fascinating Facts About Ethereum Layer 2 Optimism You Need to Know

The total value locked (TVL) on Arbitrum stands impressively at $3.14 billion, which is significantly higher than its closest competitor, Base, which has a TVL of $1.69 billion. These numbers not only underscore Arbitrum's dominance but also its robust ecosystem and widespread adoption.

2. Massive Airdrops

One of the most remarkable aspects of Arbitrum is its generous airdrop strategy. In March 2023, Arbitrum distributed over 11% of its supply, equivalent to 1.16 billion ARB tokens.

This airdrop is now valued at approximately $880 million (but it was 2x-3x more a few months back), making it one of the largest airdrops in crypto history, following the likes of Uniswap and Apecoin. And the best part? This was just the beginning. Arbitrum has hinted at more airdrops in the future, providing ongoing incentives for its community.

3. Visionary Founders

Arbitrum was created by three visionary computer scientists: Ed Felten, Harry Kalodner, and Steven Goldfeder. These founders previously collaborated at Princeton University and brought their academic expertise to the blockchain world by establishing Off-Chain Labs in 2018.

Their mission was to create a more efficient and scalable method for processing transactions on Ethereum, and Arbitrum is the fruition of their innovative vision.

4. Lightning-Fast Transactions

Transaction speed is a critical factor in the usability of blockchain networks. Ethereum, while highly secure and decentralized, can handle only about 15-30 transactions per second (TPS). In contrast, Arbitrum significantly boosts this capacity, scaling up to thousands of TPS.

This immense increase in speed means that transactions on Arbitrum are processed almost instantly, providing a seamless user experience and eliminating the long wait times associated with Ethereum during periods of high congestion.

5. Cost-Effective Transactions

Another major advantage of Arbitrum is its affordability. The cost of transactions on the Ethereum mainnet can be quite high, often running into several dollars per transaction due to gas fees. Arbitrum, on the other hand, dramatically reduces these costs.

Read more: What is DeFi? Comprehensive Guide

Swaps on Arbitrum typically incur just a few cents in gas fees, making it an economically viable option for users who transact frequently or in smaller amounts.

Explore the Arbitrum World with NuFi

Our integration with Arbitrum allows NuFi users to enjoy all these benefits directly within the NuFi wallet. Whether you are managing your crypto assets, staking tokens, or interacting with decentralized applications (dApps), NuFi provides a seamless, secure, and cost-effective platform to do so.

Ready to explore the Arbitrum world? You can install the NuFi wallet as a browser extension in just 10 seconds and start using it for free. Try NuFi wallet now.