KyberSwap, the decentralized exchange has decided that it will move to Arbitrum in order to get the users to know more about the expensive gas fees as well as the congestion of the entire Ethereum network as well.
The Decentralized Exchange or DEX aggregating company is known as KyberSwap has made a launch on layer-2 of the Ethereum scaling solution which is named Arbitrum network, according to news from best crypto forecast site.
This particular move puts the Decentralized Exchange in the 7th network or the scaling solution along with some other cryptocurrencies such as Polygon or MATIC, Ethereum or ETH, BSC or BNB, Fantom or FTM, Avalanche or AVAX, and Cronos or CRONOS.
There are some other exchanges that are included in this particular network Arbitrum. These exchanges are SwapEth, Balancer Labs, SushiSwap, Curve Finance, and much more. KyberSwap has also managed to become a member of this family that is connected to Arbitrum as the scaling solution.
The team of KyberSwap has pointed out different issues related to the congestion of the Ethereum network as well as the higher costs that are related to the on-chain transactions that take place. These problems that have been pointed out by the team could only be solved using this particular layer-2 scaling solution as well as some other important efforts as well.
The average cost that is associated with the transaction of Ethereum is definitely pretty low. It takes just 28 gwei or $1.48 in order to complete the transaction of Ethereum. This data has been presented by the tracker of the Ethereum network that is known as Etherscan. However, there might be some cases when the fees of the transaction went up higher. The fees have the potential to spike up to about 100 dollars when there is a congestion period going on.
When compared to the gas prices related to Arbitrum, the range for the latter is pretty low. According to the team that is aggregating the data, the range for Ethereum transaction prices on Arbitrum is about $0.50 to $0.69. This data has been provided by the L2 data aggregator team.
Also Read: Polkadex and PDEX are in AscendEX’s List
Low Transaction Costs in Arbitrum Means More Benefits
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.
According to the best crypto forecast site, the 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.
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