Arbitrum Reveals Consistent Growth After Airdrop
Positive developments in the Ethereum and Arbitrum networks and a possible increase in crypto investor sentiment can give ARB prices a boost.
Although the Arbitrum ARB benchmark has seen a steady decline since the wind subsided in late March, the environment is showing positive growth. A recent Nansen report shows that Arbitrum's performance improves after ventilation, making it "at a higher level" than before ventilation. Daily active workers, gas bills and business numbers have remained at high levels since April 2023.
The difference between the number of active users on Arbitrum and Optimism widened after the Aribtrum airdrop, reaching Ethereum.
The volume of trading and exchange based on Arbitrum paints a similar picture, showing a clear increase in volume after the wind.
In addition, Nansen's report shows that ARB airdrop recipients have only about 5% of the work on the blockchain and that Arbitrum attracted many new users after the airdrop.
Potential Factors for Rising ARB
Also, the update coming to Ethereum in the second half of 2023, called Cancun-Deneb (Dencun), will include EIP-4844 (proto-Danksharding), which will reduce transaction costs in Arbitrum, increasing the value of the scheme of the blockchain. In addition, the Arbitrum Foundation recently disclosed its regulatory data, part of the Layer 2 fee paid by users for publishing the data on Ethereum.
The foundation has decided to transfer funds from its participant, a total of 3,352 Ether, or $5.4 million, to Arbitrum DAO, and ETH will be used by ARB holders.
In total:— Arbitrum (,) (@arbitrum) May 10, 2023
The Arbitrum DAO has accumulated ~3,352 ETH in revenue,
The Sequencer will be refunded ~5,954 ETH which is the cost for posting all data to the Ethereum network.
How exciting is that?
The revenue generated for the DAO - the autonomous organization - could create a return for ARB holders if the community votes to direct the holders of the fees. It remains to be seen how the foundation and DAO will manage the money. "Smart money" has ARB Nansen's report shows that "smart money" and ARB funds are accumulating after the airdrop is still not sold, which is encouraging. The on-chain research firm calls Ethereum addresses of high-value, profitable buyers as "smart money."
ARB's permanent currency exchange rates turned negative like the rest of the crypto market after the Securities and Exchange Commission (SEC) filed a lawsuit against the company's largest exchanges, Binance and Coinbase, according to a report from CoinGlass.
Consumers are flexible and pay a fixed amount of money to be brief or to consume valuable items based on their desires. If the demand for a small order is high, it is considered as a high price, so buyers and small parts pay for long-term purchases.
Currently, interest rates are positive, suggesting that future buyers are nervous about ARB, raising a yellow flag for early buyers.
The ARB/US pair has been trending lower since the indicator's inception in March. A compression channel indicates the possibility of a descending wedge pattern, which breaks. A subsequent daily close above the wedge could propel the price to a 2023 high around $1.80.
In terms of ETH, ARB broke below the May low of 0.00057 ETH after the SEC case. At the time of going to press, the token is trading around the breakout level at 0.00060 ETH. A break above this level can cause the ARB to rise higher.
Technically, ARB indicates the possibility of negative behavior change. Nevertheless, the upcoming Ethereum update of Dencun and the decision made by the Arbitrum Foundation to direct the investment fund of L2 will finally decide the ARB price project.