Kraken’s Ink Layer 2 Surpasses $500 Million in TVL

Why It Matters

The rapid TVL growth underscores Ink’s emerging relevance in the DeFi ecosystem, while the user decline highlights a liquidity‑driven, rather than adoption‑driven, momentum that could shape Kraken’s token strategy.

Key Takeaways

• Ink TVL exceeds $500 million, up 3% daily
• Tydro contributes over $440 million of borrowable assets
• Daily active users fell to ~49 k from 157 k peak
• Ether price rise supports L2 liquidity growth
• Upcoming INK token may boost further adoption

Pulse Analysis

Ink’s recent TVL milestone marks a turning point for Kraken’s foray into Ethereum Layer 2 solutions. After a year of modest growth, the network’s liquidity exploded in late 2025, propelled by the launch of Tydro, a white‑label deployment of the open‑source Aave protocol. Tydro’s sizable market size—over $730 million—and its $447 million of locked assets have become the primary engine behind Ink’s ascent, positioning the L2 among the top emerging blockchains by capital inflow.

The liquidity surge coincides with broader market dynamics, notably an 8% rise in Ether’s price, which often translates into heightened activity on Ethereum‑compatible chains. Moreover, Kraken’s hinted INK token airdrop adds a speculative layer, potentially attracting new users eager for token incentives. While the TVL jump signals confidence from institutional and DeFi participants, the underlying driver appears to be capital allocation rather than organic user growth, suggesting that the network’s value proposition is currently anchored in high‑yield lending opportunities rather than broad‑based application usage.

Conversely, daily active users have plummeted to roughly 49 k, a stark contrast to the 157 k peak earlier in the year. This divergence raises questions about the sustainability of Ink’s growth if user engagement does not recover. Analysts will watch the forthcoming INK token rollout and Kraken’s integration plans closely, as they could either catalyze a resurgence in on‑chain activity or cement Ink’s role as a niche liquidity hub within the broader Ethereum ecosystem.