KyberSwap Launch on Arbitrum Created Hype Spike in Community

KyberSwap’s launch on Arbitrum corresponds with huge surge in on-chain activity

The decentralized exchange KyberSwap launched on the Arbitrum network on March 7th, at the same time boosting its on-chain activity on various other blockchains. KyberSwap’s addition to the list of DEXs that run on the Arbitrum boosted the exchange’s numbers scaling solution and saw a huge spike in on-chain activity.

After being available on Ethereum, BSC, Polygon, Fantom, Avalanche and Cronos, KyberSwap has expanded its services to the Arbitrum network. This greater networked relationship allows users to swap tokens across these blockchains with greater ease and lower fees. KyberSwap calls itself ‘DeFi’s first dynamic market maker’ and aims to provide ‘the best token rates for traders’ and maximum returns for liquidity providers. 

Arbitrum enables faster transactions and aims to eliminate the expensive gas fees associated with Ethereum. It’s a Layer-2 scaling solution that helps KyberSwap to achieve its ultimate goal: to be faster, cheaper and more secure. Over the past 7 days KyberSwap saw its active user base swell 50,000% to more than 31,631 active user wallets.

On-chain activity increases across the board

KyberSwap’s March 7th integration with Arbitrum did see some huge spikes in on-chain activity, as we can see in the graph below. User numbers and transactions rose significantly, perhaps in anticipation of Kyberswap’s integration with Arbitrum. Then on March 7th, the volume, the total incoming value going through the dapp’s smart contracts, spiked.

Source: DappRadar

Over the past week, KyberSwap’s on-chain analytics appear to show a huge rise in all categories:

  • Users increased by 50,108% to 31,631 unique active wallets  
  • Transactions went up 64,287% to 38,632 transactions
  • The volume of incoming values to the dapp’s smart contracts rose by 657% to more than $4.77 million
  • The total value of assets in the dapp’s smart contracts shot up by over 100,000%
KyberSwap’s 7-day on-chain analytics

But this doesn’t tell the whole story. The spike in users engaging with the smart contracts could have been the result of users going into KyberSwap to do their own investigations and take a look at the integration with Arbitrum without actually swapping or staking significant amounts with the platform. As we can see below, the TVL locked on KyberSwap is currently $66.61 million.

TVL in KyberSwap

When we look over the past month of KyberSwap’s TVL, we can see that it’s hardly varied during that period. This would suggest that while lots of people are interested to see what the new KyberSwap/Arbitrum integration looks like, they haven’t committed their money to it yet. At the time of writing liquidity on the Arbitrum version of KyberSwap is very thin, reaching only $37,000. 

So where does the spike in activity come from? KyberSwap launched on the Velas blockchain this week, while also seeing a surge in the price of its native KNC token. In addition Binance Custody now offers support for KNC as well, generating eyeballs to the decentralized trading platform. Furthermore, the Polygon version of KyberSwap was integrated into the play-to-earn horse racing game Pegaxy. All this, aside from the launch on Arbitrum. That’s a lot of news, bringing lots of traffic to KyberSwap.

Share this post on social media

Share this Article

Related articles

Related articles

Trading Platform Aboard Enhances Crypto Derivative Adoption on Arbitrum

An order-book-style decentralized exchange that fulfills different derivative investors’ needs