According to CoinDesk, Arbitrum's ARB token reached a record high of nearly $2 on Wednesday, while the total value locked (TVL) surpassed $2.5 billion. This growth comes as traders appear to be flocking to the network in anticipation of it driving the next wave of gains in the crypto market. In the past 24 hours, the price of ARB has increased by approximately 10%, outperforming the broader crypto market. On-chain volumes on Arbitrum-based applications have exceeded $920 million, surpassing the volumes of Solana-based applications, which experienced a boom in December due to a meme coin-led frenzy.
Data from DefiLlama reveals that the TVL on Arbitrum-based applications has grown by $1 billion since October, along with an increase in net inflows. Token incentives seem to have played a role in attracting attention to ecosystem plays. Over the past week, users of decentralized exchanges GMX and Gains Network have enjoyed increased rewards and lower fees as part of the incentives plan, likely boosting sentiment for ARB tokens. In October, Arbitrum distributed around $40 million worth of ARB tokens to projects built on the network as part of a short-term incentives plan. Projects received anywhere from a few thousand dollars to $30 million worth of ARB tokens, with GMX receiving the most rewards at 12 million ARB, valued at just over $10 million, followed by Gains Network at 7 million ARB.
