Arbitrum (ARB) is making waves in the crypto world as it recently became the 4th largest ecosystem in the market. Despite a steep 70% drop since its landing, Arbitrum’s native token continues to gain investor attention, currently trading around $1.158, down from $1.1808 on April 18.
Arbitrum Dedies The Odds
According to for Decentralized Finance (DeFi) researcher Deebs, Arbitrum has emerged as a major player in the crypto market, with Total Value Locked (TVL) soaring to an impressive $2.3 billion. This places it in the 4th position according to TVL and surpasses many of its competitors.
Additionally, since the launch of Arbitrum, stablecoins have grown in value by more than $500 million in just two months. At its peak, the network’s active user base reached more than 600,000, surpassing Optimism (OP), a fast, stable and scalable L2 blockchain created by Ethereum developers, and nearly overtaking Solana (SOL), a blockchain platform designed to host decentralized, scalable applications.
Despite these impressive metrics, the price of ARB has seen a significant 70% decline since its descent and has seen very little positive price action since then. However, DeFi researcher Deebs believes that this price drop may be a sign of a hidden gem in the cryptocurrency market.
One of the main factors that make Arbitrum an attractive investment opportunity is its high TVL, user base and liquidity. In fact, Arbitrum has maintained the highest liquidity of any Layer 2 (L2) network since its launch and is the third highest of any chain on DeFi Llama.
Additionally, while many other chains have market cap to TVL ratios higher than 1, Arbitrum boasts one of the smallest ratios at 0.6. This means that the potential price growth for ARB is significantly higher than its competitors, making it an attractive investment opportunity for those looking for long-term gains.
Additionally, ARB 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 state-of-the-art technologies such as Optimistic Rollups provides a solution to these issues, 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. This collaboration shows that the industry recognizes the value of ARB technology and the potential it holds for the future of decentralized finance.
Overall, despite the recent price drop, 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 innovative technology, make it a promising investment opportunity for those looking to tap into the potential of decentralized finance.
Featured image from Unsplash, chart from TradingView.com
