L2Beat has removed approximately $7 billion in non-circulating RAIN tokens held in team-controlled multisigs from Arbitrum's Total Value Secured metric, according to researchers at the layer-2 analytics firm. The prediction market protocol still accounts for roughly $2.6 billion in TVS on Arbitrum after the adjustment, making it the largest single asset on the chain ahead of USDC and ETH.
L2Beat researchers described the situation as "clearly absurd" and said the token appears to be "heavily manipulated," according to commentary from the firm. The analysts indicated further investigation into RAIN's position on Arbitrum is underway. RAIN raised $100 million in liquidity commitments in May and briefly became one of the three largest prediction market protocols by valuation during that period.
The removal of team-controlled tokens from TVL calculations is a standard practice in layer-2 metrics, designed to reflect assets available for actual use rather than reserves held by project treasuries. However, RAIN's remaining $2.6 billion figure—sufficient to outpace major stablecoins and native assets on Arbitrum—prompted L2Beat to flag the asset as potentially subject to market manipulation. The exact composition of the remaining TVS and the mechanism by which team tokens were concentrated in multisigs remain under review.
Arbitrum has hosted a growing number of specialized protocols since its launch in 2021, but the dominance of a single nascent asset in the chain's TVS metric raises questions about concentration risk and the reliability of aggregate security figures for layer-2 networks.
