• Arbitrum is a layer-2 scaling solution for the Ethereum blockchain that improves scalability and reduces gas fees.
• ARB has seen an 84% increase in 24-hour trading volume to $1.6 billion, with its price currently trading at $1.33 and growing by 10%.
• Smart money has been accumulating ARB, while other tokens within the Arbitrum ecosystem have experienced a catalyst effect due to the ARB airdrop.
What is Arbitrum?
Arbitrum is a layer-2 scaling solution designed for the Ethereum blockchain. It seeks to improve the scalability of the second-largest cryptocurrency network in the world subsequently reducing gas fees. The scaling protocol utilizes an optimistic roll-up system to process transactions off-chain, which are later committed to the primary blockchain—Ethereum. This method avoids the congested Ethereum network, reducing the load to allow users to send transactions much faster and at lower fees.
Arbitrum Price Prediction
CoinMarketCap reveals an 84% increase in the 24-hour trading volume to $1.6 Billion. Arbitrum price is trading at $1.33, growing by 10% in the same 24-hour period. ARB has also been one of the most volatile cryptos in the market following its launch on March 23 when it rallied almost reaching $10 before dumping to $1.1 . If interest in ARB continues, we could see another spike up towards $10 again .
Smart Money Accumulating ARB
The ARB airdrop, as expected culminated in a sell-the-news narrative, with token holders cashing out in large numbers. However, the token’s fundamentals have not faltered amid an influx of funds from institutions and other large volume buyers – smart money . Following announcement of Airdrop on March 16th , tokens within Arbitrums Ecosystem exploded including Magic (MAGIC), GMX (GMX) Radiant Network (RDNT) , Gains Network (GNS). Experts believe this pump was due to cataylst effect by Airdrop of ARB Token .
Arbitrum Ecosystem Basket
An Ape’s Prologue explained further that “on day of Airdrop which marked launch of $ARB token , prices of eco system tokens began decline” suggesting classic ‘sell -the – news’ event occured .
Can Arbitrum Price Reach $10?
Arbitrums potential as layer 2 solutions provider for Ethereum Blockchain cannot be overlooked & other tokens within ecosystems like GMX & RDNT are “fastest growing protocols terms fundamentals & price appreciation”. As long as interest remains high , we could see another rally all way upto value of 10$.