ARB, the native token of Ethereum layer-2 solution, Arbitrum, is down 68% from its January 2024 high.
However, the good news is this: while ARB holders “suffer” in the face of persistent bears, positive on-chain developments reveal a platform that is not only the largest by total value locked (TVL) but is also brimming with potential.
Over 48% of Ethereum bridged assets ended up in Arbitrum
Talking about X, one analyst said, notes User activity on Arbitrum has increased and the platform is leading in several key performance indicators (KPIs).
Importantly, the analyst found that while there are other Ethereum layer-2 solutions to choose from, including Base – which is backed by Coinbase, one of the world’s largest exchanges, and Optimism, over 48% of all assets bridged to the mainnet find their way to Arbitrum.
Users choosing Arbitrum over Base or other competitors greatly instills confidence. It also reflects its technical ability to address the scaling challenges plaguing the mainnet.
Beyond this dominance, the analyst, citing token terminal data, also notes that Arbitrum, as mentioned, ranks highest in regards to TVL. According to on-chain asset flows from blockchain analytics platform, lending and borrowing platform, Aave, is the leading contributor.
Also, Arbitrum is the most active network, considering the number of daily active addresses. Judging by the level of activity, the analyst noted that Arbitrum is even busier than the mainnet.
Interestingly, while activity can be considered, the analyst also noted that Arbitrum is ahead of other layer-2s in the number of unique token holders. This shows that layer 2 is also ahead in depth and breadth, indicating higher engagement.
Will ARB rise after a 68% drop in 7 months?
Given these impressive on-chain statistics, it remains to be seen how long it will take for ARB to recover. The token has declined by 68% in seven months. The token is still under heavy selling pressure and is a shadow of its old form.
As Ethereum is improving, ARB may follow the same path. Platform-based initiatives will also support tokens. For example, the team recently launched The Gaming Catalyst Program (GCP) has been launched to accelerate the building and deployment of GameFi platforms across its ecosystem.
Voting is ongoing and will end on August 1, when three candidates will be selected to form the GCP Council. The Council will be a decentralized autonomous organization (DAO) that will oversee the operations of GCP.
