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Arbitrum

Arbitrum (ARB)

layer-2

Arbitrum is the largest Ethereum Layer 2 by TVL, using optimistic rollup technology to deliver fast, low-cost transactions with full EVM compatibility.

Consensus: Optimistic Rollup (inherits Ethereum security)Launched: 2021Official Website

About Arbitrum

Arbitrum (ARB) is an Ethereum Layer 2 scaling solution developed by Offchain Labs. It uses optimistic rollup technology to batch transactions off-chain and submit compressed data to Ethereum, achieving significant cost savings while inheriting Ethereum's security. Launched in 2021, Arbitrum has consistently maintained the largest total value locked (TVL) among all Layer 2 networks. The ecosystem includes Arbitrum One (the main rollup chain), Arbitrum Nova (an AnyTrust chain optimized for gaming and social), and Arbitrum Orbit (a framework for building Layer 3 chains). Arbitrum is home to major DeFi protocols including GMX, Camelot, Radiant Capital, and Pendle. The ARB token is used for governance of the Arbitrum DAO, which controls a significant treasury.

Technical Specifications

4,000+

TPS

~0.25 seconds

Block Time

$0.01–$0.20

Gas Fees

Optimistic Rollup (inherits Ethereum security)

Consensus

Staking

5–8%

APY

No minimum

Min Stake

Variable

Lock Period

Use Cases

DeFi trading on major protocols like GMX and Camelot with low fees
Gaming and social applications on Arbitrum Nova (AnyTrust chain)
Building custom appchains using the Arbitrum Orbit framework
Participating in DAO governance and treasury allocation decisions

Pros

  • Largest Layer 2 by TVL with the deepest DeFi liquidity
  • Full EVM compatibility with lower fees than Ethereum mainnet
  • Sub-second block times via Arbitrum Nitro for near-instant transactions
  • Orbit framework enables building custom Layer 3 chains
  • Active DAO governance with a large community treasury

Cons

  • 7-day withdrawal challenge period when bridging back to Ethereum
  • ARB token has limited utility beyond governance
  • Centralized sequencer operated by Offchain Labs (decentralization planned)
  • Faces growing competition from Base, Optimism, and zkRollups

Where to Buy

Frequently Asked Questions

This content is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risk.

Quick Info

Symbol
ARB
Category
layer-2
Launched
2021
Smart Contracts
Yes
EVM Compatible
Yes
Staking APY
5–8%

Last updated: 2026-04-01