Hyperliquid L1 moved ahead of Arbitrum in total value locked across decentralized finance protocols, according to on-chain data tracked by DefiLlama. Hyperliquid L1 holds $1.28 billion in TVL, compared to Arbitrum's $1.23 billion, lifting Hyperliquid one spot to rank eighth among all blockchain networks.
The shift represents the first time Hyperliquid has surpassed Arbitrum on the rankings. Hyperliquid held the ninth position the previous day, according to DefiLlama's chain rankings. The $50 million gap between the two chains narrows the distance that separated them weeks earlier.
Hyperliquid, a decentralized exchange built on its own Layer 1 blockchain, has drawn billions in user deposits since its mainnet launch in March 2024. The chain's TVL has climbed steadily through 2025 and into early 2026, driven largely by perpetuals trading activity on its native exchange.
Arbitrum, Offchain Labs' Ethereum Layer 2 launched in 2021, has accumulated TVL across a broader ecosystem of protocols. Lido, Curve and Aave deploy significant liquidity on Arbitrum, alongside dozens of smaller applications spanning lending, swaps and derivatives.
Movements between adjacent chains typically occur from reallocation of capital across competing platforms rather than new liquidity entry into the broader ecosystem. On-chain TVL figures can fluctuate with price changes in underlying assets, redemption cycles and trader behavior.
