Arbitrum Attracts Over 48% Of Assets From Ethereum: Why Is ARB Down 68% In 7 Months?

Dalmas Ngetich

10 months ago

2 mins read

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ARB, the native token of Arbitrum, the Ethereum layer-2 solution, is down 68% from January 2024 highs.

However, there is good news: While ARB holders “suffer” in the face of unrelenting bears, positive on-chain developments reveal a platform that is not only the largest by total value locked (TVL) but also brimming with potential.

Over 48% Of Ethereum Bridged Assets End Up In Arbitrum

Taking to X, one analyst notes a surge in user activity on Arbitrum and that the platform leads across multiple key performance indicators (KPIs).

Of importance, the analyst observed that though there are other Ethereum layer-2 solutions to choose from, including Base–which is backed by one of the world’s largest exchanges, Coinbase, and Optimism, over 48% of all assets bridged from the mainnet find their way into Arbitrum.

Arbitrum leads in bridge deposits from Ethereum | source: @JustDeauIt via X

Having users opt for Arbitrum, and not Base or other competitors, is a huge confidence boost. It also indicates its technical ability to address scaling challenges plaguing the mainnet.

Beyond this dominance, the analyst, citing Token Terminal data, also notes that Arbitrum, as mentioned, reigns supreme regarding TVL. According to on-chain asset flow from the blockchain analytics platform, Aave, a lending and borrowing platform, is the major contributor.

Arbitrum price trending upward on the daily chart | Source: ARBUSDT on Binance, TradingView

At the same time, Arbitrum is the most active network, looking at the number of daily active addresses. Gauging from activity levels, the analyst notes that Arbitrum is even more busy than the mainnet.

Interestingly, while activity could be a factor to consider, Arbitrum, the analyst also said, leads other layer-2s in the number of unique token holders. It indicates that layer 2s also lead in depth and breadth, indicating high engagement.

Will ARB Rise After Falling By 68% In 7 Months

Considering these impressive on-chain statistics, it remains to be seen when ARB will recover. The token dropped by 68% in seven months. The token remains under immense selling pressure and is a shadow of its former self.

As Ethereum recovers, ARB could follow suit. Platform-led initiatives will also support the token. For instance, the team recently launched the Gaming Catalyst Program (GCP) to accelerate the building and deployment of GameFi platforms in its ecosystem.

Voting is ongoing and ends on August 1, when three candidates will be elected to form the GCP Council. The council will be a decentralized autonomous organization (DAO) overseeing the GCP’s functions.

Feature image from Shutterstock, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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