ARB, the native token of Arbitrum, an Ethereum Layer-2 solution, has fallen 68% from its January 2024 highs.
However, there is good news: while ARB holders are “suffering” from the relentless bears, positive developments in the blockchain indicate that the platform is not only the largest by total value locked (TVL), but also has huge potential.
Over 48% of Ethereum Bridged Assets Are Arbitraged
Taking X, one analyst notes the surge in user activity on Arbitrum and the fact that the platform is leading in several key performance indicators (KPIs).
Importantly, the analyst noted that while 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 transferred from the mainnet end up on Arbitrum.
Users choosing Arbitrum over Base or other competitors is a huge boost to trust. It also points to its technical ability to solve the scaling issues plaguing the mainnet.
In addition to this dominance, the analyst, citing Token Terminal data, also notes that Arbitrum, as mentioned, dominates in terms of TVL. According to the on-chain asset flow from the blockchain analytics platform, Aave, a lending and borrowing platform, is the main participant.
At the same time, Arbitrum is the most active network when looking at the number of daily active addresses. Assessing the activity levels, the analyst notes that Arbitrum is even busier than the main network.
Interestingly, while activity may be a factor to consider, the analyst also said that Arbitrum leads other Layer 2s in terms of unique token holders. This indicates that Layer 2s also lead in depth and breadth, indicating high engagement.
Will ARB Rise After Falling 68% in 7 Months?
Given these impressive on-chain stats, it remains to be seen when ARB will recover. The token has fallen 68% in seven months. The token remains under tremendous selling pressure and is a shadow of its former self.
As Ethereum recovers, ARB may follow suit. The platform’s initiatives will also support the token. For example, the team recently launched Gaming Catalyst Program (GCP) to accelerate the creation and deployment of GameFi platforms across its ecosystem.
Voting is ongoing and will conclude on August 1st, when three candidates will be elected to form the GCP Council. The Council will be a decentralized autonomous organization (DAO) that oversees the functions of GCP.
