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Information about Arbitrum (ARB)
Arbitrum is a layer 2 solution designed to improve the capabilities of Ethereum smart contracts — boosting their speed and scalability, while adding in additional privacy features to boot. The platform is designed to allow developers to easily run unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on a second layer, while still benefiting from Ethereum’s excellent layer 1 security.
Arbitrum is powered by the Nitro proprietary technology stack. Nitro’s next-generation rollup architecture provides 7x more throughput than Ethereum and lower fees without sacrificing any security. Arbitrum is currently at the top of Ethereum’s Layer-2 chain list with a TVL of more than $1.8 billion.
ARB is a native token of the Arbitrum ecosystem, operating on Arbitrum according to ERC20 standard.
Offchain Labs, the developers behind Arbitrum, announced the shift to a decentralized autonomous organization (DAO) structure — the Arbitrum DAO. ARB holders can vote on proposals that affect the features, protocol upgrades, funds allocation and election of a Security Council.
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Arbitrum’s price has surged due to the creation of 1.6 million new wallets, pushing active addresses to 4.6 million. Last month alone, the network executed 1.3 billion transactions, reflecting significant increased user engagement.
Despite the bullish sentiment, Arbitrum’s token, $ARB, remains down over 80% from its January 2024 peak. A $140,000 security exploit has raised concerns, and discussions within the Arbitrum DAO about its Gaming Catalyst Program are ongoing due to lack of progress.
Nvidia rejected Arbitrum from its AI Accelerator program, aiming to minimize risks associated with crypto projects. This setback occurs during Arbitrum’s battle to rebound from significant price losses.
In response, Arbitrum is pursuing token buybacks and ARB airdrops to regain support. Despite being a leader in Ethereum Layer-2 scaling, its price remains substantially lower than previous highs.
73% of top traders on Binance are going long on ARB, showing confidence in its future. Despite market struggles, ARB posted a 1.25% price increase, signaling a potential rally.
An outflow of $1.55 million in ARB tokens from exchanges hints at accumulation. The Long/Short Ratio of 2.74 reinforces bullish momentum, suggesting traders expect continuous upward movement.
Arbitrum has introduced a proposal for an ARB airdrop intended to reward early supporters who returned their tokens, part of efforts to rebuild its reputation following a significant drop in ARB’s price.
The proposal involves distributing ARB tokens proportionately to those who participated in the first airdrop in March 2023. Feedback from the community is essential, with voting handled by the Arbitrum DAO.
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