Arbitrum’s ecosystem is experiencing substantial growth in protocol revenue and total value locked (TVL), propelled by significant adoption of tokenized real-world assets (RWAs) and competitive DeFi protocols, even amidst market volatility.
The Ethereum scaling layer generated $1.43 million in weekly protocol revenue, reflecting a notable 23% increase, while its TVL climbed to $2.42 billion. This expansion is strongly tied to burgeoning institutional interest utilizing blockchain solutions.
Specifically, tokenized real-world assets on the network surged to an all-time high of $300 million. Forecasts predict accelerating adoption could propel this figure to $1 billion before the year’s end.
Highlighting the trend, Spiko’s tokenized short-term Eurobills (EUTBL) saw an overnight jump of nearly $30 million. Its valuation now stands at $128 million, accounting for 41.6% of all tokenized RWAs active on Arbitrum.
Despite overall positive momentum, the platform’s revenue stream remains sensitive to broader market conditions. Prior performance data indicates a 6.54% month-over-month decline occurred throughout May.
Competition within Arbitrum’s DeFi landscape is intensifying. Platforms offering perpetual DEX functionalities—including GMX, Gains Network, and HMX—alongside yield-focused protocols like Penpie, Beefy, and Pendle, continue vying for dominance, spurring continuous innovation ecosystem-wide.