Arbitrum Surpasses Polygon (Matic) with 15,000 Funded Wallet Addresses

2023-11-29, 02:07

[TL; DR]

Arbitrum has overtaken Polygon as the number one layer-2 protocol.

The Arbitrum price may reach $2 in the coming days or weeks.

Recently, the Arbitrum Foundation and governance community introduced staking rewards.

Introduction

Several blockchains have experienced growth this year as the market renews its interest in cryptocurrencies. Alsp, many crypto assets have experienced sustained price increases since mid-October, triggered by the news of more than 10 spot crypto applications in the United States.

Arbitrum is one blockchain that has recorded a strong price surge. In this post, we explore changes in Arbitrum network activity, including the number of funded addresses and price level. We shall also consider ARB’s short-term price prediction.

Arbitrum’s Recent Price Performance

The ARB crypto price reclaimed the $1.15 during the second week of November resulting in a 30% rally for the first half of the month. Basically, the Arbitrum token price has been rising since the beginning of the month.

Factors that Contributed to Arbitrum’s Recent Success

There are several factors that have contributed to Arbitrum’s strong rally and network performance which have positioned it as the top layer-2 blockchain.

The surge in Arbitrum’s network usage has lured both retail and institutional investors to put their funds into the blockchain. In fact, institutional investors have piled billions of dollars into the Arbitrum network.

On-chain data from IntoTheBlock indicates that Arbitrum funded addresses have surpassed 15,000, showing a remarkable rise in the blockchain’s products. The following diagram indicates the change in Arbitrum non-zero wallet addresses.

Arbitrum (ARB) Non-zero Addresses - IntoTheBlock

The funded addresses, also called non-zero addresses, represent crypto wallets that hold ARB tokens. They are different from inactive or empty wallets. An increase in the number of non-zero addresses indicates greater adoption of the network.

In most cases, a significant rise in funded addresses is bullish as it shows that many investors are interested in the cryptocurrency. Notably, over 55% of registered Arbitrum wallets hold some tokens. A continued increase in the number of ARB non-zero addresses may result in the token price rising to $1.50.

The Arbitrum blockchain has also recorded an increase in the number of new-users in November. For example, on 4 November the number of new addresses registered on the network reached 218, becoming its 50-day peak.

Arbitrum Approves Staking Rewards

Arbitrum’s governance community and the Arbitrum Foundation have approved 100 million ARB tokens (1%) from its treasury as staking reward. The aim of this initiative is to boost the level of economic activity of the network. With this new thrust, Arbitrum will be offering annual yields of between 7.84% and 78.43%.

The introduction of the staking program resulted in Arbitrum price rise from $1.07 to $1.20, showing the growing Optimism in the token and the entire ecosystem. However, by 18 November the price retraced to $1.01, something that highlights the volatility of cryptocurrencies.

Arbitrum Overtakes Polygon as Top Layer2 Network

The rapid increase in Arbitrum network adoption enabled Polygon to become the number one layer-2 network on the Ethereum blockchain. A recent CoinGecko research supports that fact. The next picture summarizes statistics about the various layer-2 blockchains.

Arbitrum (ARB) Becomes Largest Layer-2 Ecosystem - Coingecko

As the diagram depicts, Arbitrum’s Total Value Locked that stands at $1.79 billion doubles that of Polygon, with a TVL of $775.4 million and now ranked number two among the layer-2 blockchains.

What this means is that crypto investors are using more Arbitrum products and services than any other layer-2 blockchain that supports the Ethereum network. Notably, the rise in demand for its products has led to the current ARB token price rally.

Emerging Concerns about Arbitrum Network

Probably, the greatest concern about the Arbitrum network is a decrease in its whales, an indication of a potential decline in interest among the investors. To this effect,Lookonchain reports that since 16 November a whale sold 14 million ARB tokens worth about $14.84 million.

The same whale withdrew 22.55 million ARB tokens with a value of $27.76 million from Binance and Gate.io. Also, in September that investor deposited 8.44 million ARB tokens to Binance. The next screenshot gives the greater details.

Arbitrum Network Whale Activity - Lookonchain

If similar large sales of ARB token continue its price could fall. Nonetheless, that depends on the frequency of such transactions.

Arbitrum Price Forecast: Targeting $2

After the Arbitrum price hit $1.15 it may continue on an upward trajectory or even fall. However, on-chain data from The Global In/Out of the Money (GIOM) indicates that the ARB token bullish momentum is likely to continue. With the current momentum, the ARB price may break the $1.40 resistance level. Information on the following chart confirms such a possibility.

Arbitrum (ARB) Price Prediction - IntoTheBlock

If the 1,710 crypto investors who purchased 879,690 ARB at an average value of $1.39 exit early a price correction may occur. Nevertheless, if the bulls overcome that sell-wall crypto investors may buy Arbitrum at $2 as IntoTheBlock has predicted.

In case the Arbitrum price falls below $1 the 1, 850 crypto investors who acquired 5.08 million ARB at an average value of $1.01 could offer much support, preventing the token from further price falls. Basically, some analysts who Arbitrum prognose point to a possible continued uptrend.

Conclusion

The Arbitrum network recorded a new high of non-zero wallets that stand at over 15,000. As a result of the increase in its network activity, Arbitrum has overtaken Polygon to become the number one layer-2 protocol that exists on the Ethereum blockchain.

FAQs about Arbitrum

What is Arbitrum?

Arbitrum is a leading layer-2 scaling solution for the Ethereum blockchain. Currently, it is the number one ranked layer-2 blockchain that operates on the Ethereum network. It has high transaction speed, low fees and high throughput.

How to buy Arbitrum on Gate.io?

To buy Arbitrum at Gate.io a user should fund his/her verified account. He/she can convert any major cryptocurrency like Bitcoin, Ether and USDT to ARB. Alternatively, one can purchase ARB using P2P trading or any other suitable method such as wire transfer.

Is Arbitrum a good buy?

Arbitrum is one of the best cryptocurrencies to buy since it provides a reliable, cost-effective and secure way for developers and users using the Ethereum network. In fact ARB token powers the number one layer-2 scaling solution for the Ethereum blockchain.

What is the price of 1 ARB?

The ARB token is currently trading at around $0.9946 USD although its value constantly changes. Traders can buy the ARB tokens on major cryptocurrencies including Gate.io.

Can you invest in Arbitrum?

Anyone can invest in Arbitrum through buying and holding it for a long period. Others may choose to buy and sell it within a short period, an investment strategy called trading. Gate.io is a reliable and secure crypto exchange where investors can buy and sell ARB.

Does Arbitrum have a coin?

Yes, Arbitrum has a coin called ARB which powers its products and services. Investors can buy and hold the ARB token and benefit from its appreciation.

Is Arbitrum cheaper than Polygon?

Arbitrum has lower fees than both Polygon and Ethereum. This is one reason why many users and developers choose Arbitrum over Polygon. The value of the Arbitrum token, currently trading at $0.9946 USD, is higher than that of Matic with a current value of $0.7359 USD.


Author: Mashell C., Gate.io Researcher
*This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
Partager
Contente
gate logo
Credit Ranking
Complete Gate Post tasks to upgrade your rank