KyberSwap DEX Launches on Layer 2 Network Arbitrum

Decentralized exchange (DEX) aggregator KyberSwap has launched on the Arbitrum network, a second-layer Ethereum scaling solution.

The move will see Kyberswap deployed on its seventh network or scaling solution, the other six being Ethereum, Polygon, Fantom, BSC, Avalanche and Cronos.

As of this writing, KyberSwap has joined SwaprEth, Balancer Labs, Curve Finance, and SushiSwap as DEXs available on Arbitrum.

The KyberSwap team noted that Ethereum network congestion and the cost of on-chain transactions are issues that can be addressed “through layer-two scaling and other efforts.”

The average transaction cost on ethereum is currently a very low 28 gwei ($1.48), according to ethereum web tracker Etherscan, but fees can spike above $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 application (dApp) data aggregator DappRadar ranks KyberSwap at number 76 among DEXs. It has seen a huge increase in activity since March 5, with total users up 350% to 19,870 and daily transaction volume up 31% to around $610,000.

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In addition to daily user counts and transaction volumes, the new integration may have helped the Total Value Locked (TVL) on Arbitrum end a 5-day slump. According to second-tier ecosystem tracker L2Beat, the current TVL on Arbitrum is $3 billion. Arbitrum emerged as the leading L2 network by a clear margin, with dYdX in second place with a TVL of $965 million.

Arbitrum is the only L2 that has seen net user growth via new addresses in the last week, outpacing BNB, Ronin, and other established L2 solutions. In the last week of February, there were 46,200 unique addresses on Arbitrum, an increase of 12.7% from the previous week.

KyberSwap’s recent TVL volatility mirrors overall activity in the DeFi space. Across the DeFi ecosystem, TVL has been on a slow downward trend since peaking at $180.7 billion on Nov. 10, and according to DappRadar, stands at $105.3 billion as of this writing.

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