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- 1 Despite the ARB fading, holder increase signals long-term price movement.
- 2 The number of ARB holders has significantly increased.
What is Arbitrum (ARB)
To increase Ethereum’s scalability, a roll-up chain named Arbitrum (ARB) was developed. This is accomplished by combining many transactions into a single transaction, lightening the burden on the Ethereum network.
A roll-up chain is a layer 2 solution that, before sending a single transaction to the Ethereum main net, collects and processes transactions off-chain. As a result, users may take advantage of speedier and less expensive transactions while still gaining the advantages of the Ethereum network’s decentralization and security.
The native token of the Arbitrum platform is the ARB token. The coin serves as a means of governance for the Arbitrum protocol in addition to being used to pay transaction fees on the network. Protocol updates and changes may be proposed by ARB holders and voted on by the community.
The hype of AirDrop
With a spike in sell-off activity after the token AirDrop on March 23, Arbitrum’s [ARB] value has suffered. ARB’s price, which was $1.25 at the time of publication, has decreased by 89% since its debut.
With over 400,000 new members joining in only two weeks, Arbitrum’s user base significantly increased in the weeks before the token AirDrop. With this, the network’s total user base reached over 3 million.
On March 23, Arbitrum surpassed its previous daily high of 1.10 million transactions, setting a new high of 2.73 million transactions.
The Decline in the Hype
However, the number of daily transactions on Arbitrum has trended down due to the rising ARB token sell-off and the gradual waning of the excitement around the token-launch event.
After making many efforts to bounce back from its sharp decline at debut, Arbitrum [ARB] has lost 16.58% of its value during the last week. The token’s decrease demonstrated that it has been among the worst performers among the top 50 cryptocurrencies by market capitalization.
The Steady Holders for ARB
The number of ARB holders has increased steadily since March 25 despite its lackluster performance. Token Terminal states that the exponential expansion made it possible for there to be 640,000 token holders.
Additionally, given that the effects of increasing accumulation may not be immediate, a rise in this statistic often indicates that a token has a huge potential for long-term profitability.
While the ARB fanfare may have diminished, its development activities have not. Developers’ ability to contribute to network improvements is quantified by this statistic. Santiment reported that the development activity was at 15.31%.
The present value was still quite near to the high in February 2023, although being muted. This exemplifies how seriously the Arbitrum development community takes its mission. As a result, if it holds up, it may also support a bullish run.
According to the weighted sentiment data, ARB’s situation was not entirely shining. The measure was at its most negative point since the token’s launch at the time of publication.
The reduction suggested that the hype around ARB was on the verge of extinction since the weighted sentiment takes social loudness perception into account. But this metric’s state may need to improve for Arbitrum to succeed over the long run.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
