Popular altcoin of recent times Arbitrum, has surpassed Ethereum in terms of decentralized exchange (DEX) volume. Latest figures show Arbitrum’s 24-hour trading volume reached $1.83 billion, a significant week-on-week increase of 32.58%. This increase pushed Arbitrum to command 33.40% of total DEX volume. In this context, it displaced Ethereum, which dropped by 4.77% in its 24-hour volume to $1.444 billion.
The Changing Landscape in DEX Volume
The DeFi sector is witnessing a notable shift, with Arbitrum leading the way with a 32.58% weekly change in trading volume and a dominant presence in the DEX space. long time leader Ethereum, experienced a decrease in 24-hour trading volume. However, it still maintains a significant total value lock (TVL) of $5.96 billion, accounting for 26.29% of the total DEX market.
Meanwhile, solana and Binance Smart Chain (BSC) have seen varying degrees of changes in trading volumes. The former experienced a sharp decline of 51.26% in its 24-hour volume. BSC’s volume decreased slightly by 0.83%, while Polygon experienced a significant decrease of 34.53%.
Ethereum’s Declining Dominance
The monthly dominance chart provided by DefiLlama paints a clear picture of the changing tides in the DEX ecosystem. Ethereum, which once towered above the market, has seen its dominance fall to 28.7% as of January.
Arbitrum currently holds 24.25% of the market. It is possible to say that this is evidence of its increasing influence. Solana, BSC and Polygon follow with 13.83%, 12.15% and 3.76% respectively. Smaller players such as Thorchain, Avalanche, Optimism, zkSync Era and Mantle and other smaller protocols contribute the remaining share.