[Arbitrum attracts over 48% of assets from Ethereum: Why has ARB fallen 68% in 7 months? 】
ARB, Arbitrum’s native token, is down 68% from its January 2024 highs. Despite the bearish pressure on ARB holders, the platform’s on-chain development shows its potential.
Arbitrum surges in user activity and leads in multiple key performance indicators (KPIs). Although there are other Ethereum Layer-2 solutions on the market, such as Coinbase-backed Base and Optimism, more than 48% of mainnet assets cross-chain to Arbitrum. This demonstrates user confidence in Arbitrum’s technical capabilities.
According to data from Token Terminal, Arbitrum tops the list in terms of total value locked (TVL), mainly contributed by lending platform Aave. At the same time, Arbitrum is the most active network, with the number of daily active addresses showing that it is busier than the mainnet. Arbitrum also leads other Layer-2s in terms of number of unique token holders, indicating high participation.
However, the ARB token is down 68% in the past seven months and is still facing significant selling pressure and struggling to regain its former glory. As Ethereum recovers, ARB may follow in its footsteps. The token will also be supported by platform initiatives, such as the recently launched Game Catalyst Program (GCP), which aims to accelerate the construction and deployment of the GameFi platform within its ecosystem.
Voting will end on August 1st to select three candidates to serve as members of the GCP Council, the decentralized autonomous organization (DAO) responsible for overseeing the operations of GCP.
