Kraken’s Ink Layer‑2 Hits $500 M in Total Value Locked, While Daily Users Slump
Ink’s liquidity has surged since the fall of 2025, but the network’s active user base has contracted to roughly one‑third of its peak.
Overview
The Ethereum Layer‑2 solution Ink, built by centralized exchange Kraken, broke the half‑billion‑dollar barrier in total value locked (TVL) on 6 January, according to data aggregated by DefiLlama. The protocol reported a TVL of about $503 million, a 3 % increase over the previous 24‑hour period. This marks a dramatic acceleration in on‑chain capital after a prolonged period of modest growth following Ink’s mainnet launch in December 2024.
Drivers of the TVL Spike
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Launch of Tydro – In October 2025 Ink introduced Tydro, a white‑label lending platform built on Aave’s open‑source code. The protocol now commands a market size of roughly $738 million, with around $444 million available for borrowing and $294 million already lent out. DefiLlama attributes about $447 million of Ink’s TVL to Tydro, up 34 % month‑on‑month.
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Ethereum Price Rally – Ether’s price appreciation (about an 8 % rise to $3,197 over the past week) likely bolstered the valuation of assets held on Ink, contributing to the overall TVL increase.
- Speculation Around INK Token – Kraken has hinted at an upcoming native token for the Layer‑2, with plans to distribute it via the Kraken Drops airdrop. Anticipation of a token launch has been cited as a factor encouraging capital inflows, though the specifics of the tokenomics remain undisclosed.
User Activity Trends
Despite the inflow of liquidity, Ink’s daily active users (DAU) have been on a steady decline. The network reached its highest recorded DAU of just over 157,000 in March 2025. By early January 2026 that figure had fallen to roughly 49,000, according to Token Terminal. The drop‑off coincides with a shift in user behavior toward higher‑value, lower‑frequency interactions (e.g., borrowing on Tydro) rather than the broader, transaction‑heavy activity that characterized the platform’s early months.
Comparative Landscape
Within the emerging blockchain arena, Ink’s $500 M TVL places it among the larger newcomers, though it still trails established Layer‑2 solutions such as Arbitrum and Optimism. The next biggest protocol on Ink after Tydro is Nado, with about $41 million locked, followed by Velodrome at roughly $14 million.
Analysis
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Liquidity vs. Adoption – The divergence between TVL growth and user activity suggests that Ink’s recent expansion is being driven primarily by institutional or high‑net‑worth participants leveraging the lending services, rather than a broad consumer base. This could signal a maturing ecosystem focused on capital efficiency rather than sheer transaction volume.
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Risk of Centralized Influence – As a product of Kraken, Ink benefits from the exchange’s brand and existing user base, but the reliance on a single corporate entity could raise concerns about decentralization and governance, especially once the INK token is released.
- Sustainability of Growth – The current upward trajectory appears linked to Tydro’s rapid user adoption and the broader ETH bull market. A pullback in Ether’s price or a slowdown in DeFi lending activity could test the resilience of Ink’s TVL.
Key Takeaways
| Insight | Detail |
|---|---|
| TVL Milestone | Ink surpassed $500 M in total value locked, reaching $503 M on 6 Jan 2026. |
| Primary Liquidity Source | Tydro accounts for ~ $447 M of the TVL, driven by its lending operations. |
| User Base Contraction | Daily active users have dropped from a peak of 157 K (Mar 2025) to ~49 K. |
| Market Context | ETH’s recent price rise has aided the TVL increase; the network now ranks among the larger emerging Layer‑2 chains. |
| Future Outlook | Anticipated INK token launch and airdrop could attract new participants, but sustained growth will depend on broader DeFi demand and user engagement. |
Ink’s achievement underscores Kraken’s ambition to position itself as a full‑stack provider in the Ethereum ecosystem. The coming months will reveal whether the influx of capital can translate into a revitalized, active community or remain confined to high‑value, low‑frequency use cases.
Source: https://thedefiant.io/news/blockchains/kraken-s-ink-layer-2-surpasses-usd500-million-in-tvl
