Arbitrum Attracts Over 48% Of Assets From Ethereum: Why Is ARB Down 68% In 7 Months?
July 23 2024 - 9:30PM
NEWSBTC
ARB, the native token of Arbitrum, the Ethereum layer-2 solution,
is down 68% from January 2024 highs. However, there is good news:
While ARB holders “suffer” in the face of unrelenting bears,
positive on-chain developments reveal a platform that is not only
the largest by total value locked (TVL) but also brimming with
potential. Over 48% Of Ethereum Bridged Assets End Up In Arbitrum
Taking to X, one analyst notes a surge in user activity on Arbitrum
and that the platform leads across multiple key performance
indicators (KPIs). Related Reading: Analyst Says Solana Price Will
Surge 1,000% To $1,800, Here’s When Of importance, the analyst
observed that though there are other Ethereum layer-2 solutions to
choose from, including Base–which is backed by one of the world’s
largest exchanges, Coinbase, and Optimism, over 48% of all assets
bridged from the mainnet find their way into Arbitrum.
Having users opt for Arbitrum, and not Base or other competitors,
is a huge confidence boost. It also indicates its technical ability
to address scaling challenges plaguing the mainnet. Beyond this
dominance, the analyst, citing Token Terminal data, also notes that
Arbitrum, as mentioned, reigns supreme regarding TVL. According to
on-chain asset flow from the blockchain analytics platform, Aave, a
lending and borrowing platform, is the major contributor. At the
same time, Arbitrum is the most active network, looking at the
number of daily active addresses. Gauging from activity levels, the
analyst notes that Arbitrum is even more busy than the mainnet.
Interestingly, while activity could be a factor to consider,
Arbitrum, the analyst also said, leads other layer-2s in the number
of unique token holders. It indicates that layer 2s also lead in
depth and breadth, indicating high engagement. Will ARB Rise After
Falling By 68% In 7 Months Considering these impressive on-chain
statistics, it remains to be seen when ARB will recover. The token
dropped by 68% in seven months. The token remains under immense
selling pressure and is a shadow of its former self. As Ethereum
recovers, ARB could follow suit. Platform-led initiatives will also
support the token. For instance, the team recently launched the
Gaming Catalyst Program (GCP) to accelerate the building and
deployment of GameFi platforms in its ecosystem. Related Reading:
XRP Rally To $0.6360 Subsides As Price Faces New Decline Voting is
ongoing and ends on August 1, when three candidates will be elected
to form the GCP Council. The council will be a decentralized
autonomous organization (DAO) overseeing the GCP’s functions.
Feature image from Shutterstock, chart from TradingView
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