Arbitrum Research Hub | ARB information, history and analysis
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.
RedotPay, based in Hong Kong, concluded a 40 million USD Series A funding round led by Lightspeed. The company enhances the use of cryptocurrency in daily transactions and launched Visa cards compatible with Solana and Arbitrum.
The firm has partnered with StraitX and Visa to advance crypto payment options in Singapore. However, there are concerns regarding restricted services for users located outside Hong Kong.
CertiK has identified a signature verification exploit on Arbitrum, leading to a theft of approximately 140,000 USD. This security breach allows attackers to bypass checks and drain funds from unverified smart contracts.
In response, CertiK has advised users to revoke contract approvals to prevent further losses. This incident underscores a troubling trend of increasing vulnerabilities in the cryptocurrency sector.
Arbitrum’s value has dropped from a local high of 0.8 USD to 0.34 USD over the past three months. Currently, 0% of ARB holders are in profit, resulting in 99% at a financial loss.
The persistent downtrend signals a bearish market. Analysts suggest potential recovery may occur as historical trends indicate that such low profitability can lead to a buying opportunity, and recent buying activity hints at this.
Arbitrum [ARB] is currently at risk of establishing a lifetime low driven by negative market conditions. It has witnessed a notable decline of 31.67% in the past month and an additional drop of 4.44% in just 24 hours.
A rise in active addresses has been observed, increasing from around 224,000 to 262,000. However, the Average Time Held of ARB has plummeted by 79.96%, suggesting investors lack strong incentives to hold the asset.
Whale activity is prominent, with a considerable $15.2 million ARB transaction observed. If ARB does not reclaim its support level at $0.4685, the price may plunge to $0.3453, forming a new all-time low, though upcoming stablecoin developments could offer some hope.
Offchain Labs, the driving force behind Arbitrum, announced their “universal intent engine” designed to facilitate Layer 2 interoperability. This engine aims to streamline cross-chain swaps and transfers, allowing transactions in less than three seconds.
With this new system, users can trigger complex actions with just a single wallet command. The initial launch is set for Q1 2025, aiming for more advanced features by Q3 2025. This setup encourages seamless token transfers across networks.
Arbitrum’s intent engine positions it against existing protocols like Across and Synapse. Additionally, Optimism is working on a native interoperability system, meaning Arbitrum is poised for significant competition in enhancing Layer 2 connectivity.
ARB trading volume is $138.67m. Market capitalization reaches $2.05b.
ARB trading volume is $215.27m. Market capitalization reaches $1.85b.
In the last 24 hours, ARB saw a significant selling wave with a negative chain netflow totaling 13.8 million USD. This has resulted in a price drop of 10.28%, contributing to a larger loss over the past month.
The number of active addresses has dropped by 40.46% recently, indicating a waning interest among retail investors. If current trends persist, ARB might decline to its November 2024 low of 0.459 USD or even to 0.42 USD, its all-time low.
Over the last month, ARB declined by 19.42%. Currently, 89% of holders face losses, prompting long-term exits. The NVT Ratio hit 201, reflecting less active users amid bearish conditions. The analysis indicates potential further price drops, suggesting ARB could reach 0.56 USD amidst ongoing market challenges.
Despite a potential price drop, the negative MVRV ratio of -5.01 suggests holders are capitulating, possibly indicating a reversal opportunity. If a rebound occurs, ARB might reclaim a price of 0.74 USD, signaling hope amidst current market fears.
Lobby Finance now holds the majority of voting power in the Arbitrum DAO with 20.65 million ARB tokens, accounting for 9.8% and 10.67% of the last two votes respectively. This was achieved through a single transaction, demonstrating substantial influence.
In the Arbitrum DAO, users can delegate their votes, making governance more accessible. Lobby Finance not only serves as a delegate but also facilitates vote buying, giving users instant or auction-based options to influence proposals.