Speculators on ArbitrumSep 13, 2021
While L1 tokens pumped last week on the back of several liquidity mining programs (Avalanche, CELO, Fantom, Algorand – just to name a few), it almost looked like a bad time for L2s like Arbitrum to launch. For context, on Friday, ~$170M worth of ETH had been bridged onto Arbitrum.
That changed over the weekend though, as yield farms for speculative tokens like ArbiNyan and Carbon.fi (which is already down 99%) managed to spur FOMO and cause bridge volume to spike. Arbinyan’s ETH pool currently has over $1.45B of ETH. Meanwhile, Arbitrum’s ETH bridge custodies over ~$2b worth of ETH. It’s worth noting that a single whale wallet was responsible for ~168K ETH bridged.
Since then, several high-risk forks have shown up to meet degen demand. Arbitrum’s openness means the network is also susceptible to rug pulls — just like any other permissionless smart contract chain — so it’s recommended to proceed with extra caution when looking at these early projects.