More competition coming as X7 will be launching on Arbitrum and will be looking to take market share as a DEX offering under collateralized leverage.

Arbitrum doesn’t yet have a dominant DEX, according to Walter Teng, vice president of digital asset strategy at Fundstrat Global Advisors. "No de facto DEX on Arbitrum (yet) means the market will look to find a Velodrome equivalent,” he said to CoinDesk, referring to the most popular automated market maker on rival layer 2 network Optimism. Velodrome boasts a TVL of $216.32 million, per DeFiLlama.