70% Price Drop, But These Charts Reveal Its True Value
Arbitrum (ARB) has been making waves in the crypto world as it recently became the 4th largest ecosystem in the market. Despite experiencing a sharp decline of 70% since its airdrop, Arbitrum’s native token has continued to gain attention from investors, currently trading around $1.158, down from $1.1808 on April 18th.
Arbitrum Defies The Odds
According to the Decentralized Finance (DeFi) researcher Deebs, Arbitrum has emerged as a major player in the crypto market, with its Total Value Locked (TVL) soaring to an impressive $2.3 billion. This puts it in 4th position by TVL, surpassing many of its competitors.
Additionally, since the launch of Arbitrum, the value of stablecoins has grown by over $500 million in just two months. At its peak, the network’s active user base reached over 600,000, surpassing Optimism (OP), a fast, stable, and scalable L2 blockchain built by Ethereum developers, and nearly overtaking the blockchain platform designed to host decentralized, scalable applications Solana (SOL).
Despite these impressive metrics, ARB’s price has experienced a significant drop of 70% since its airdrop and has had very little positive price action since. However, DeFi researcher Deebs believes that this dip in price may be a sign of a hidden gem in the crypto market.
One of the main factors that make Arbitrum an attractive investment opportunity is its high TVL, user base, and liquidity. In fact, since its launch, Arbitrum has maintained the highest liquidity of all Layer 2 (L2) networks and is the third highest of all chains on DeFi Llama.
Furthermore, while many other chains have a market capitalization to TVL ratio above 1, Arbitrum boasts one of the smallest ratios at 0.6. This means that the potential price upside for ARB is significantly higher than its competitors, making it an enticing investment opportunity for those looking for long-term gains.
Additionally, ARB’s technology has been praised for its ability to address some of the key issues facing the crypto industry, such as scalability and high transaction fees. ARB’s use of cutting-edge technology such as Optimistic Rollups provides a solution to these problems, making it an attractive option for investors looking for a reliable network with great potential.
Another positive sign for ARB is the amount of support it has received from major players in the crypto industry. This includes partnerships with well-known crypto projects such as Uniswap, Aave, and Chainlink. These collaborations demonstrate that the industry recognizes the value of ARB’s technology and the potential it holds for the future of decentralized finance.
Overall, despite the recent drop in price, ARB’s strong fundamentals and growing network usage suggest that it is a hidden gem in the crypto market. Its partnerships with major players in the industry, as well as its innovative technology, make it a promising investment opportunity for those looking to capitalize on the potential of decentralized finance.
Featured image from Unsplash, chart from TradingView.com