Chart of the Day
While L1 tokens lifted off on the back of several liquidity mining programs, the total value locked (TVL) in Layer 2 solutions on Ethereum has breached the $3 billion barrier, largely thanks to Arbitrum, which contributed nearly 75% of the volume. In a matter of days, $2.3 billion has been poured into the roll-up chain developed by Offchain Labs, as yield farming tokens such as ArbiNYAN rose in popularity and spurred massive FOMO that drove a spike in bridge volume. Arbitrum’s sudden rise to fame suffered a slight setback, as the network went down on Sept. 14 for roughly 45 minutes due to a temporary Sequencer malfunction. While Arbitrum One stresses that user funds are not at risk, the team continues to caution users that future outages are possible as the chain is still in beta.
Talk of the Town
Never a boring day in crypto (in a bad way). A drama-packed day for the industry as rising Ethereum rival Solana shed 15% of its value after suffering a denial-of-service disruption. The network was overwhelmed by a surge in transaction load six hours after announcing intermittent instability on Twitter, resulting in an unintended forking. The prolonged outage has shaken market participants’ faith in Solana’s stability and accelerated SOL’s retracement from an all-time high of $215 to nearly $150. Meanwhile, an attempted reorganization attack on Ethereum has swindled a small number of nodes to switch to the invalid chain.