Key Highlights
- L2Beat removed roughly $7 billion in team-controlled RAIN tokens from Arbitrum’s Total Value Secured (TVS).
- The excluded tokens were held in multisig wallets controlled by the project team and were deemed non-circulating.
- Even after the adjustment, RAIN still accounts for roughly $2.6 billion in Arbitrum TVS, making it the network’s largest asset.
L2Beat, a blockchain analytics platform, has removed approximately $7 billion worth of non-circulating RAIN tokens from Arbitrum’s Total Value Secured (TVS), saying the assets were held in a handful of project-controlled multisig wallets and should not have been counted toward the network’s secured value.
According to an X post by donnoh.gwei, Head of Research at L2Beat, the reduction was not caused by an exploit, capital outflow, or protocol failure.
“We just removed ~$7B of RAIN non-circulating supply from Arbitrum TVS held in a few multisigs controlled by the team itself,” the researcher wrote.
The adjustment led to a noticeable decline in Arbitrum’s reported TVS, prompting questions from users who observed the sudden change across analytics dashboards.
Why L2Beat excluded non-circulating tokens
Although billions of dollars’ worth of team-controlled tokens were excluded, L2Beat said RAIN remains Arbitrum’s largest asset by TVS.
According to the platform, roughly $2.6 billion worth of RAIN is still included in Arbitrum’s secured value, placing it ahead of USDC (around $2.5 billion) and ETH (approximately $1.4 billion). The researcher described the situation as “clearly absurd” and said the token appears to be “heavily manipulated,” adding that it will continue investigating the matter.
The comments suggest L2Beat believes the remaining valuation still does not accurately reflect the token’s economic reality.
Protocol activity tells a different story
The concerns become more pronounced when compared with the Rain protocol’s own operating metrics.
According to DeFiLlama, the Rain protocol currently reports:
- $26.8 million in Total Value Locked (TVL)
- $137,308 in 30-day DEX trading volume
- $462,721 in 30-day DEX notional volume
- Around $899,000 in annualized protocol revenue and earnings
Despite those relatively modest protocol figures, DeFiLlama lists RAIN with a market capitalization of approximately $9.48 billion and a fully diluted valuation (FDV) of about $16.48 billion.
The large gap between protocol usage and token valuation is likely to fuel further debate over how ecosystem tokens should be valued and represented across blockchain analytics platforms.
What this means for TVS metrics
The adjustment also highlights a broader issue facing blockchain analytics providers as ecosystems increasingly rely on native tokens that remain concentrated in treasury or foundation-controlled wallets.
Rather than counting every on-chain token equally, L2Beat has increasingly refined its methodology to distinguish between assets that are genuinely circulating and those effectively controlled by project insiders.
The latest RAIN adjustment reflects that approach, with the platform arguing that excluding non-circulating, team-controlled holdings provides a more accurate picture of the economic security underpinning a network. However, with billions of dollars’ worth of RAIN still contributing to Arbitrum’s TVS, L2Beat said its review of the token is ongoing.
As blockchain analytics platforms continue refining how they measure value, the RAIN case is likely to become another reference point in the ongoing debate over token concentration, valuation metrics, and transparency across Layer-2 ecosystems.
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