L2Beat, an analytical research platform, removed about $7 billion in non-circulating $RAIN tokens from Arbitrum’s Total Value Secured. The analytics platform said the assets were held in project-controlled multisignature wallets and should not have counted toward the network’s secured value.
The change was not linked to an exploit, protocol failure, or capital withdrawal. L2Beat’s head of research, donnoh.gwei, said the adjustment corrected how the platform treated tokens controlled by the project team.
$RAIN Valuation Faces Scrutiny After TVS Drop
The removal caused a sharp drop in Arbitrum’s reported TVS. L2Beat clarified that the decline resulted from a methodology change rather than funds leaving the network.
$RAIN still remains Arbitrum’s largest asset by secured value. L2Beat said about $2.6 billion in $RAIN remains included, ahead of roughly $2.5 billion in $USDC and about $1.4 billion in $ETH.
The remaining total has increased attention on the token’s valuation and ownership structure. The L2Beat researcher called the situation “clearly absurd” and said the token appeared to be heavily manipulated.
However, Rain’s operating figures have also drawn attention. DeFiLlama reports about $26.8 million in Total Value Locked, along with $137,308 in 30-day decentralized exchange volume.
The platform also lists about $462,721 in 30-day DEX notional volume. Annualized protocol revenue and earnings stand near $899,000. However, DeFiLlama places $RAIN’s market capitalization at about $9.48 billion and its fully diluted valuation near $16.48 billion.
The gap has placed greater focus on token concentration, circulating supply, and the effect of limited trading activity on reported network value.
TVS Methodology Returns to Focus
The $RAIN adjustment highlights how Total Value Secured could be affected by concentrated token holdings. Large balances may raise a network’s reported figure even when those assets are not widely circulating.
donnoh.gwei argued that project-controlled holdings should be excluded when they do not reflect open-market ownership. The platform said this approach gives a more accurate view of the economic value secured by the network.
Even after the removal, $RAIN still contributes billions of dollars to Arbitrum’s TVS. That leaves the token ahead of $USDC and $ETH within the network’s asset breakdown.
The case has added to the debate over how analytics platforms should treat non-circulating supplies. It has also renewed attention on token ownership, valuation methods, and transparency across Layer-2 ecosystems.
Related: Swyftx Predicts AI Freelancers Will Drive $262B in Stablecoin Payments by 2033
u.today
bsc.news
coinpedia.org
