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- 1 Arbitrum was airdropped on March 23, 2023.
- 2 ARB price fell by more than 85% intraday.
- 3 Arbitrum is one of the fastest Layer-2 scaling solution for Ethereum.
Arbitrum is launched as a scaling solution for Ethereum that uses optimistic rollup to enhance the scalability and speed of the network. Arbitrum was created by Offchain Labs which is a blockchain research and development firm, and was launched in September 2021. Its optimistic rollup technology allows it to execute transactions off-chain, in turn, freeing up space on the Ethereum network and reduce the cost of transactions.
Arbitrum
The significance of Arbitrum lies in its ability to address one of the most pressing issues that Ethereum and other blockchain networks are facing – scalability. Given that Decentralized Finance (DeFi) and Decentralized Applications (DApps) are getting more popular each passing day, the Ethereum network has become overcrowded ,resulting in longer transaction times and higher gas fees, which has made it difficult for users to deploy services.
Arbitrum’s rollup technology allows it to process transactions off-chain, meaning that DApps and DeFi protocols can operate more efficiently and at a cheaper price. This in turn widens its customer base. Another aspect is its compatibility with Ethereum. The platform was designed to fully collaborate with Ethereum smart contracts. This means developers can easily migrate their DApps and DeFi protocols to Arbitrum.
Arbitrum (ARB) Token Price Fell Sharply After the Airdrop
After ARB token was airdropped at $11.1, the price took a downturn and fell sharply. The price fell by over 85% in a single session, and currently stands at $1.4. Although the trading volume shows bulk buying, as investors begin trusting the pool, believing it may solve Etherum’s scalability issue.
Arbitrum has an ambitious future roadmap. It aims to launch its own layer-3 solution named Orbit. It also wishes to enable developers to deploy programs written in popular programming languages. Furthermore, it plans to expand its validator set in order to include more independent institutional validators and move its protocol to layer two with Arbitrum One.
Conclusion
Arbiturm is a Layer-2 scaling solution for Ethereum, which is designed to work with Ethereum smart contracts. It aims to increase efficiency of the networks amid growing fame of DApps and DeFi. The current price of ARB token is 88% down from the airdrop value of $11.1, but still the investors place bids on the aim that it is set to achieve.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
