Arbitrum attracts more than 48% of its assets from Ethereum
ARB, the proprietary token of Arbitrum's Ethereum layer-2 solution, is down 68% from its January 2024 highs.
However, there is good news: while ARB holders are being “hurt” by ruthless bears, positive developments in the network show that the platform is not only the largest by total blocked value (TVL), but is also full of potential.
More than 48% of Ethereum-related assets fall into Arbitrum
To summarize, one analyst notes a surge in user activity on Arbitrum and that the platform is leading the way in several key performance indicators (KPIs).
Importantly, the analyst noted that while there are other Tier 2 Ethereum solutions to choose from, including Base, which is backed by one of the world's largest exchanges Coinbase and Optimism, more than 48% of all assets connected from the main network end up in Arbitrum
The fact that users choose Arbitrum's over Base or other competitors is a huge confidence booster. It also points to its technical ability to address the scaling challenges faced by the core network.
In addition to this dominance, the analyst, citing token terminal data, also notes that Arbitrum's, as mentioned, has undivided dominance over TVL. According to the asset flow in the blockchain from blockchain analytics platform, Aave, a lending and borrowing platform, is a major contributor.
At the same time, Arbitrumus is the most active network, judging by the number of daily active addresses. When evaluating activity levels, the analyst notes that Arbitrumus is even busier than the main network.
Interestingly, while activity may be a factor to consider, Arbitrum's, according to the analyst, also leads other layer 2 companies in the number of unique token holders. This indicates that layer 2 is also leading in depth and breadth, indicating high engagement.
Will ARB grow after falling 68% in 7 months
Given these impressive statistics on the network, it remains to be seen when ARB will recover. The token has fallen 68% in seven months. The token remains under immense selling pressure and is a shadow of its former self.
As Ethereum ARB recovers, it may follow suit. Platform-based initiatives will also support the token. For example, the team recently launched the Gaming Catalyst Program (GCP) to accelerate the creation and deployment of GameFi platforms in its ecosystem.
Voting is ongoing and ends on August 1, when three candidates will be elected to form the GCP Council. The Council will be a decentralized autonomous organization (DAO) overseeing GCP functions.$ETH