It’s been over 2 years since we’ve explored the Arbitrum network, and it feels overdue and necessary, seeming that Ethereum is mooning!
$ETH’s future seems as bright as a supermoon, but how about one of the leading Ethereum Layer 2’s, Arbitrum?
Let’s find out!
What is Arbitrum?
Arbitrum is a leading Ethereum Layer 2 network that first went live in 2021 with the primary goal of scaling Ethereum to its finest form. After 4 years of surviving a brutal market, they have been BUIDLing to create a thriving ecosystem to unlock the ultimate $ETH experience.
Ethereum, the incredible but congested, slow and expensive network, needs support to scale, and that’s why networks such as Arbitrum are essential to a bulletproof future for $ETH.
How Does Arbitrum Work?
Arbitrum operates as its own blockchain built on top of Ethereum, meaning it benefits from the security of the mainnet, while simultaneously providing a faster and cheaper abode for on-chain transactions.
This works as they use optimistic rollups to group up multiple transactions into a single bundle and execute them on the Layer 2 network, Arbitrum, in order to reduce the congestion of the Ethereum mainnet and maintain fast, cheap and efficient transactions.
Arbitrum Ecosystem & Stats
Over the course of its existence, they have attracted the likes of the most popular dApps in Web3, ranging from the leading DEX, Uniswap, to the leading NFT marketplace, OpenSea. Everyone wants to build on Arbitrum, and it goes to show with its ecosystem of over 231 dApps…
Constantly battling for the top spot, Arbitrum is currently ranked the 2nd largest Ethereum Layer 2 network by TVL with over $3.36B, and just behind Base, which is leading with $4.78B. Over 64.83 million users are on Arbitrum, and the network is seeing a huge surge in new users. At this rate, it could easily lead the L2 narrative in the coming bull run.
Going beyond the Layer 2 sends us into orbit.
Arbitrum Orbit Chains
The Arbitrum Orbit is an ecosystem of chains built using Arbitrum technology (AVM), enabling anyone to launch a chain on top of Arbitrum with its own rules, gas token, governance and so on.
Why, well, as you may’ve guessed, it helps to further scale the Ethereum mainnet.
As it stands, there are 88 Chains in Orbit, and you will probably recognise many, including ApeChain, the Plume Network, Aleph Zero and many others. When one grows, they all grow, and of course, that means the Ethereum mainnet too.
Arbitrum Token ($ARB)
Rewinding back to 2023, after two years of a thriving Layer 2, @Arbitrum decided to airdrop their native token $ARB to its most loyal users who made the network what it is. Although it doesn’t currently offer much utility, its primary function is to serve as the governance token.
Conclusion
At the time of writing, the $ARB is priced at $0.5294 with a market cap of $2.72B. Last year, in January 2024, $ARB achieved an ATH of $2.40 and is now down an estimated 78%. Now that Ethereum is finally on its way up, will the $ARB token’s first bull run be a successful one that may break its ATH?
Well, only time can unravel that answer, anon…
Official Arbitrum Links
Disclaimer
The content provided in this article is purely informational and nothing said is financial advice. Proceed with caution and always invest what you are prepared to lose. Remember that you are entirely responsible for your assets and investments and the author and the publication do not endorse any of the cryptocurrencies, protocols and/or strategies in this article.
