Bittime - Arbitrum, one of the leading scaling solutions for the Ethereum Layer-2 network, experienced significant asset swapping (buying and selling) among investors following the recent unlock of its new token. This movement resulted in a decrease in the price of the ARB token.
On March 16, after much anticipation, the Arbitrum network finally released more than 1 billion ARB tokens with a total value of more than 2 billion US dollars. This launch is being closely watched due to its potential to impact the price of the ARB token.
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What is Arbitrum (ARB)?
Based on the source you provided, Arbitrum is a Layer 2 scaling solution for the Ethereum blockchain. Arbitrum enables fast smart contract transactions while reducing transaction costs.
Layer 1 blockchains like Ethereum have limitations in terms of transaction speed and costs. Layer 2 solutions like Arbitrum overcome this limitation by processing transactions on a separate blockchain and then settling them on the main Ethereum blockchain.
In short, the Layer 2 blockchain runs smart contracts, while the Layer 1 blockchain stores the data. In other words, Arbitrum handles the processing and clustering of blockchain transactions, thereby reducing congestion and costs on the Ethereum mainnet.
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For example, DeFi projects like Sushiswap and Aave use Arbitrum to offer efficient exchanges with lower gas fees.
The rest of the article discusses the decline in the price of the ARB token after the recent launch of its new token. Nonetheless, market observers see this dip as an investment opportunity considering Arbitrum's potential.
What Happened to Arbitrum?
After the token launch, blockchain data analysis company SpotOnChain discovered six wallets that received tokens from Arbitrum and then sent them to crypto exchanges.
SpotOnChain data shows that these wallets sent approximately 8.95 million ARB tokens, worth approximately 16.4 million US dollars, to Binance.
Interestingly, these wallets still hold around 32.95 million ARB tokens which are worth around 56.7 million US dollars. Transferring tokens to an exchange is usually seen as a negative signal because it indicates the owner intends to sell their crypto assets.
ARB Prices Drop, But There's Potential
Along with the general price decline in the crypto market, this large transfer of ARB tokens caused the price of ARB tokens to fall to the lowest level since January, namely at 1.62 US dollars.
However, there was a slight price increase to 1.70 US dollars. Nonetheless, this price drop reflects a significant loss of approximately 20% in value in the past week.
Although the ARB token price fell, market observers saw this drop as an opportunity for investors to increase their holdings, considering Arbitrum's potential.
Data from DeFiLlama shows that Arbitrum is the largest Ethereum Layer-2 solution. Arbitrum dominates the market with high trading volume on decentralized crypto exchanges (DEX) and a total asset value locked (TVL) of 4.087 billion US dollars.
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Additionally, blockchain analysis firm IntoTheBlock revealed that the Ethereum Layer-2 network as a whole processes more than 55% of total transactions. IntoTheBlock commented:
“Among the top Ethereum Layer-2 networks, there are more than 1.8 million transactions every day, and Arbitrum processes more than 1 million of those transactions.”
Arbitrum's recent integration with Dencun enhancements has significantly reduced transaction costs, further increasing its competitiveness.
How to Buy Arbitrum (ARB) on Bittime
You can buy and sell Arbitrum (ARB) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Arbitrum (ARB) is available on Bittime with the market pair ARB/IDR. To be able to buy ARB IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Arbitrum (ARB) on Bittime.
Monitor price chart movements for Arbitrum (ARB), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
How to Add Arbitrum Network to MetaMask
Arbitrum Price Prediction (ARB) in 2024
Arbitrum (ARB): Its Ecosystem and Latest ARB Airdrop
Solving the Ethereum Transaction Fee Crisis with Arbitrum
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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