Arbitrum’s Native Token Outperforms Competitors
The native token of the Ethereum-based layer 2 network Arbitrum, ARB, has shown significant strength in the market, outperforming other smart contract tokens over the past 30 days. During this period, ARB has risen by 75%, surpassing tokens such as Optimism’s OP token, Solana’s SOL, and BNB.
Arbitrum’s Dominance in Total Value Locked
Arbitrum’s dominance in terms of total value locked (TVL) among layer 2 networks built on top of Ethereum is a key factor contributing to its strength. According to data from decentralized finance L2Beat, Arbitrum currently holds a market share of 49.17%, far surpassing its closest competitor, Optimism Mainnet, with a market share of 28.85%.
Consistent Increase in TVL
Arbitrum has experienced a consistent increase in its TVL since October last year. The TVL has risen by about 50%, reaching $2.51 billion from $1.66 billion. This data from DeFi tracking site DefiLlama demonstrates the network’s growth and popularity.
Ethereum Upgrade Benefits Layer 2 Solutions
The upcoming Ethereum Dencun upgrade is expected to benefit layer 2 solutions like Arbitrum by reducing rollup transaction costs, lowering gas fees, and improving network capacity. The incorporation of changes proposed by EIP-4844 will enhance the performance and efficiency of layer 2 networks.
Bullish Chart Pattern for ARB
Despite a recent pullback from its all-time high of $2.11 on January 4, ARB’s daily chart shows a potential bull flag formation. This pattern suggests that the price may resume its previous bullish trend once it breaks out of the pattern. Traders and investors may find this chart pattern encouraging.
Impressive Performance of ARB
As of the time of writing, ARB is trading at $1.95, showing an impressive 11.7% increase in the past 24 hours and a 3% increase in the past 7 days. This demonstrates the ongoing strength and growth of Arbitrum’s native token.
Hot Take: Arbitrum Dominates with Nearly 50% of Ethereum Layer 2 Total Value Locked
The Ethereum-based layer 2 network Arbitrum has emerged as a dominant force in the market. With its native token, ARB, outperforming other smart contract tokens and its strong position in terms of total value locked, Arbitrum is solidifying its presence in the crypto space. The upcoming Ethereum upgrade further enhances the prospects for layer 2 solutions like Arbitrum. As ARB continues to show bullish chart patterns and impressive performance, it remains an asset to watch for traders and investors seeking opportunities in the crypto market.
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