Arc Defies Bearish Narrative as TVL Growth Outpaces DEX Volume Decline
Recent data from Arc's decentralized exchange (DEX) shows an 88% drop in trading volume, which initially appears concerning. However, a closer look at other metrics reveals a more nuanced picture.
The DEX volume fell from $410.82 million on launch day, September 16, to $50.97 million by September 21, and has since settled around $47.6 million. But when examining the same dashboard, it's revealed that total value locked (TVL) in Arc is actually growing, with a current figure of $347.44 million, up 1.45% in the last 24 hours.
Furthermore, net inflows over this period were positive at $6.9 million. Stablecoin supply on Arc stands at $628.47 million, with USDC accounting for 99.06% of it. The lending side of the ecosystem is also building, with Morpho Blue's TVL at $192.27 million and Aave V4 holding $127.38 million.
While DEX volume may be weak, reflecting the fading impact of launchpad-driven activity, fee generation on Arc remains thin, with app fees totaling just $298,470.88 over the last 24 hours, translating to actual app revenue of only $14,071.82. This gap between fees and revenue indicates a maturity problem rather than an imminent collapse.