The Decline of Arbitrum (ARB): A 68% Drop Since January 2024
The value of Arbitrum, the native currency of Ethereum’s layer-2 solution Arbitrum, has experienced a significant decline of 68% since its peak in January 2024.
Encouraging On-Chain Advancements
Despite the drop in value, Arbitrum shows promising on-chain advancements:
- Holds the highest amount of Total Value Locked (TVL)
- Handles approximately 48% of Ethereum bridging assets
- Demonstrates technological proficiency in resolving mainnet scalability issues
Key Performance Indicators
Arbitrum demonstrates superiority in various key performance indicators (KPIs), with Aave, a platform for lending and borrowing, being the primary driver of on-chain asset flow. Additionally, it boasts:
- The highest level of activity across networks
- A greater number of daily active addresses than the mainnet
- The highest number of distinct token holders among layer-2 solutions, indicating high user involvement
The Uncertain Future of ARB
Although the on-chain figures are promising, it remains uncertain when ARB will experience a recovery. The token has faced a significant decline of 68% over the past seven months, mainly due to substantial selling activity, and is currently a mere semblance of its previous state.
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