Arbitrum’s Native Token Outperforms Smart Contract Tokens

Arbitrum takes over with almost 50% of the total value locked in Ethereum Layer 2

Last updated: January 9, 2024 21:21 EST

Arbitrum, the Ethereum-based layer 2 network, has been making waves in the market lately. Its native token, ARB, has been outperforming other smart contract tokens over the past 30 days, showcasing significant strength and attracting investors’ attention.

According to data from CoinMarketCap, ARB has surged by an impressive 75% during this period, surpassing the likes of Optimism’s OP token, Solana’s SOL, and BNB. This remarkable performance is indicative of the trust and confidence investors have in Arbitrum’s potential.

Dominance in Total Value Locked (TVL)

Arbitrum’s strength can be attributed to its dominance in terms of Total Value Locked (TVL) among layer 2 networks built on top of Ethereum. According to data from decentralized finance L2Beat, Arbitrum holds a whopping 49.17% market share, leaving competitors in the dust. Optimism Mainnet, the closest competitor, lags behind with a market share of 28.85%.

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This significant market share is a testament to the network’s reliability and scalability and boosts confidence in its future prospects.

Consistent Increase in TVL

Arbitrum has demonstrated a consistent increase in its Total Value Locked (TVL) since October of last year. The TVL has risen by approximately 50%, soaring from $1.66 billion to the current value of $2.51 billion, according to data from DeFi tracking site DefiLlama. This steady growth further solidifies Arbitrum’s position in the market.

Ethereum Dencun Upgrade Enhancements

The upcoming Ethereum upgrade, incorporating changes proposed by EIP-4844, is expected to benefit layer 2 solutions like Arbitrum. The upgrade aims to reduce rollup transaction costs, thereby lowering gas fees and improving network capacity. These improvements will undoubtedly provide a boost to Arbitrum’s performance and attract more users to the ecosystem.

Bullish Chart Pattern for ARB

Despite a recent pullback after reaching an all-time high of $2.11 on January 4, ARB’s daily chart reveals a potential bull flag formation. The bull flag pattern is generally seen as a continuation pattern, indicating that the price is likely to resume its previous bullish trend once it breaks out of the pattern.

As of the time of writing, ARB is trading at $1.95, marking an impressive 11.7% increase over the past 24 hours and a 3% increase over the past 7 days.

Q&A for Readers

Q: How does ARB’s performance compare to other smart contract tokens?

A: ARB has outperformed notable smart contract tokens such as OP, SOL, and BNB over the past 30 days, showcasing its strength in the market.

Q: What contributes to Arbitrum’s dominance in TVL among layer 2 networks?

A: Arbitrum’s reliability, scalability, and strong performance contribute to its dominance in Total Value Locked (TVL) among layer 2 networks built on top of Ethereum.

Q: What is the significance of the Ethereum Dencun upgrade for Arbitrum?

A: The Ethereum Dencun upgrade, incorporating changes proposed by EIP-4844, is expected to reduce transaction costs and improve network capacity, benefiting layer 2 solutions like Arbitrum.

Q: What is the potential of ARB’s bull flag pattern?

A: The bull flag pattern on ARB’s daily chart suggests a potential continuation of the previous bullish trend once the price breaks out of the pattern.

Future Outlook and Investment Recommendations

Based on Arbitrum’s strong performance, increasing TVL, and the improvements expected from the Ethereum Dencun upgrade, the future looks promising for the network and its native token, ARB. Investors may consider adding ARB to their portfolios as it demonstrates its potential to deliver significant returns.

Additionally, keeping an eye on market trends and the broader cryptocurrency landscape is crucial for making informed investment decisions. Staying updated with the latest developments and industry news can help investors capitalize on emerging opportunities.

References

1. ARB Maintains Impressive 30% Price Uptrend
2. Solana Price Prediction: SOL Bounces Back 100%
3. BNB Surges 11% to Overtake Solana
4. Bitcoin ETF Approval to Trigger Crypto Market Rally
5. Arbitrum’s Total Value Locked Surges Past $25 Billion

Remember to share this article with friends and fellow crypto enthusiasts to spread the word about Arbitrum’s impressive performance and potential!

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