The Arbitrum (ARB) price increased by double digits on June 2, 2023, after a popular DeFi address resumed purchasing the governance token. The address, known as “Whale Steer”, has been accumulating ARB since January 2023, and its latest purchase of 1.2 million ARB tokens was worth around $1 million at the time of the deal.
The ARB price rally comes as the broader cryptocurrency market has been on the up, with Bitcoin (BTC) and Ethereum (ETH) reaching new all-time highs. However, it is not clear if ARB's price rally is sustainable.
One factor that could support the rally is the continued growth of the Arbitrum network. Arbitrum is a layer 2 scaling solution for Ethereum that offers faster and cheaper transactions than the main Ethereum network. The network has experienced rapid growth in recent months, with the total value locked (TVL) in the network reaching $10 billion in April 2023.
Another factor that could support the rally is the upcoming launch of Arbitrum Odyssey, a program that will incentivize users to test different applications on the Arbitrum network. The program will offer users the chance to win prizes, including ARB tokens.
However, there are also some factors that could influence the price of ARB. One factor is the general volatility of the cryptocurrency market. The cryptocurrency market is notoriously volatile and the ARB price could be subject to wild price changes.
Another factor that could influence ARB's pricing is competition from other Layer 2 scaling solutions for Ethereum. There are a number of other Layer 2 scaling solutions for Ethereum, including Polygon, Optimism, and Loopring. These solutions offer similar features to Arbitrum and could compete with Arbitrum for users and TVL.
Overall, the rally in ARB's price is likely due to a combination of factors, including the continued growth of the Arbitrum network, the upcoming launch of the Arbitrum Odyssey, and the general rally in the cryptocurrency market. However, there are also some factors that could influence the price of ARB, such as the volatility of the cryptocurrency market and competition from other Layer 2 scaling solutions for Ethereum.
