Decentralized Exchange (DEX) aggregator KyberSwap has launched a solution to scale Layer 2 Ethereum on the Arbitrum Network.
The move puts Kyberswap in its seventh network or expansion solution along with Ether (ETH), Polygon (MATIC), Fantom (FTM), BSC (BNB), Avalanche (AVAX), and Cronos (CRONOS).
KyberSwap joins SwaprEth, Balancer Labs, Curve Finance and SushiSwap as DEXs are available on Arbitrum at the time of writing.
The KyberSwap team cites congestion on the Ethereum network and network transaction costs as issues that can be resolved “through Layer 2 scale and other measures.”
According to the Ethereum network tracker Etherscan, the average transaction cost on Ethereum is currently very low at 28 gwei ($1.48). During periods of traffic jams, the commission can reach more than $100. By comparison, gas charges on the Arbitrum range from $0.50 to $0.69, according to the L2 L2 fee data compiler.
The Decentralized Applications (DApp) data aggregator DappRadar ranks KyberSwap at 76th place compared to other DEX hubs. It has seen a significant increase in activity since Saturday, when the total number of users increased 350% to 19,870, and daily transaction volume jumped 31% to around $610,000.
In addition to daily users and trading volume, the new integration may have helped secure the total value (TVL) on Arbitrum at the end of the five-day downturn. TVL’s current value on Arbitrum is $3 billion, according to tier 2 ecosystem tracker L2Beat. Arbitrum is the best L2 network by a clear margin, while dYdX is a close second with $965 million in TVL.
Arbitrum was the only L2 to see net user growth for new addresses last week that outpaced that of BNB Smart Chain, Ronin, and other well-established Tier 2 solutions. 12.7% more than last week.
On the topic: 18.36 million Ethereum addresses joined the network in 2021
TVL KyberSwap’s recent volatility reflects activity in the DeFi region as a whole. Across the entire DeFi ecosystem, TVL has seen a slow downtrend since its November 10 peak from $180.7 billion to $105.3 billion at the time of writing, according to DappRadar.