The decentralized exchange has moved onto Arbitrum to help users get around Ethereum network congestion and expensive gas fees.
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Decentralized exchange (DEX) aggregator KyberSwap has launched on the layer-two Ethereum scaling solution Arbitrum network.
KyberSwap joins SwaprEth, Balancer Labs, Curve Finance, and SushiSwap as the DEXes available on Arbitrum as of the time of writing.
— Kyber Network (@KyberNetwork) March 7, 2022
The KyberSwap team points to Ethereum network congestion and the cost of on-chain transactions as problems that can be solved “through Layer-2 scaling and other efforts.”
The average cost of a transaction on Ethereum (ETH) is currently quite low at 28 gwei ($1.48) according to Ethereum network tracker Etherscan, but fees can spike to over $100 during periods of congestion. By comparison, gas fees on Arbitrum range from $0.50 to $0.69 according to L2 data aggregator L2 Fees.
Decentralized App (dApp) data aggregator DappRadar ranks KyberSwap #76 compared to other DEXes. It has enjoyed a tremendous increase in activity since March 5 as total users have increased 350% to 19,870 and daily transaction volume has jumped 31% to about $610,000.
In addition to daily users and trading volume, the new integration may have helped total value locked (TVL) on Arbitrum end a five-day downturn. The current TVL on Arbitrum is $3 billion according to layer-2 (L2) ecosystem tracker L2Beat. Arbitrum is the leading L2 network by a clear margin with dYdX in second place with $965 million in TVL.
Arbitrum was the only L2 to see net growth in users by new addresses last week, outpacing the growth rate of BNB, Ronin, and other well-established L2 solutions. There were 46,200 total unique addresses on Arbitrum in the last week of February, a 12.7% spike from the previous week.
Recent volatility on KyberSwap’s TVL is reflective of the activity in the DeFi space in general. Across the entire DeFi ecosystem, TVL has been on a slow downtrend since the peak on Nov. 10 of $180.7 billion to $105.3 billion as of the time of writing according to DappRadar.