Arbitrum Market Cap Slips Below Optimism After Crypto Market Carnage
The recent crypto market downturn caused Arbitrum’s market cap to fall below that of its rival project, Optimism. According to CoinGecko, Arbitrum’s governance token ARB reached a new all-time low of $0.745, while Optimism’s OP token gained 6.8% and is now trading at $1.33. Although ARB has partially recovered and is currently trading at $0.782, this drop in market cap is significant.
Liquidations of ARB Long Orders
The shift in market caps can be attributed to the substantial liquidations of ARB long orders. On September 11, CoinGlass data revealed that $2.2 million worth of longs were liquidated, a level not seen since the flash crash in August. This decline in market cap occurred after the initial hype surrounding Arbitrum during the launch of Worldcoin, which is built on Optimism’s infrastructure, faded.
Comparison of Total Value Locked (TVL)
DeFi applications on both Arbitrum and Optimism have experienced a decline in total value locked (TVL). However, there hasn’t been a significant difference in performance between the two protocols. Arbitrum currently has a TVL of $1.67 billion, more than 2.5 times that of Optimism’s $0.63 million TVL.
Hot Take: Arbitrum Struggles as Optimism Gains Ground
The recent market downturn has caused Arbitrum’s market cap to slip below its rival, Optimism. This decline can be attributed to the liquidation of ARB long orders and the fading hype around Worldcoin. Despite having a higher TVL, Arbitrum has not outperformed Optimism. It remains to be seen how these two projects will fare in the competitive crypto market.
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