Arbitrum (ARB) Price Nears All-Time Low as Base Emerges as Fastest L2-Network
The emergence of Base, the rising Layer-2 network, has had a negative impact on the price of Arbitrum (ARB), bringing it close to its all-time low of $0.91. Base recently announced a proposal that allows it to earn up to 118 million OP tokens in a revenue and cost-sharing arrangement. This partnership between Base and Optimism seems to have triggered bearish signals for ARB.
Main Breakdowns:
- Base becomes the fastest Layer-2 network to reach 100,000 users, grabbing attention away from Arbitrum.
- Arbitrum’s active addresses drop to all-time lows, indicating a decline in market demand.
- Hacks and rug-pulls on the Arbitrum network may have contributed to the decline in network activity.
- Dropping below the critical $0.90 support level could lead to bigger losses for ARB.
- If ARB regains network activity, the price could move towards $1.00.
Hot Take: The battle for supremacy among Layer-2 networks intensifies as Base gains traction, causing ARB’s price to approach its all-time low. The decline in active addresses and the potential loss of the $0.90 support level pose significant challenges for ARB’s price recovery.
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