The post Curve Finance Swaps on Arbitrum Could Vanish in Coming Months: Here’s Why appeared on BitcoinEthereumNews.com.

Key Insights: Curve Finance’s Arbitrum usage has dropped below 2% of its total TVL, raising sustainability concerns. A new proposal suggests cutting all L2 developments due to low returns across 24 chains. Ethereum continues to dominate Curve’s fees, volume, and governance focus; L2s are barely holding on. Curve Finance, a decentralized exchange (DEX) known for stablecoin and low-slippage swaps, might be closing shop on Arbitrum, and possibly other Layer 2 (L2) networks too. A new proposal on Curve’s governance forum suggests killing off all future L2 deployments. And if you check the numbers, that call isn’t coming out of nowhere. Arbitrum TVL Is Shrinking Fast To understand what’s going wrong, start with total value locked (TVL), which shows how much money users have deposited into Curve’s smart contracts. On August 4, Curve’s TVL on Arbitrum stood at just $52.6 million. For comparison, Ethereum, the original base chain for Curve, had over $3.1 billion. That’s not a typo. Arbitrum now makes up barely 1.6% of Curve’s total TVL, and it’s dropping. Curve finance TVL by chain- Source: DeFiLlama Arbitrum is one of the most popular Ethereum L2s, offering cheaper and faster transactions by offloading data from Ethereum’s main chain. Yet despite its broader adoption, Curve’s presence there is fading. Other chains like Base, Fraxtal, and Sonic aren’t doing much better either. Curve’s TVL on all L2s combined is less than 3% of its Ethereum TVL. That’s a major warning sign for Curve on Arbitrum and its other L2 deployments. Trading Volume Isn’t Helping Either TVL tells you where the money is parked, but what about activity? Let’s look at Curve’s 24-hour DEX volume on August 4. Ethereum pulled in $304 million. Arbitrum? Just $3.6 million. Even Sonic, a much newer chain, clocked $2.1 million. That’s not just bad; it’s borderline irrelevant…

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Filed under: News - @ August 4, 2025 11:27 pm