Alongside the rest of the crypto market, Arbitrum, a layer-two scaling solution for Ethereum, has surged by 44% in the past week, reaching major highs. Though the surge can be attributed to the ubiquitous uptrend in the market, the massive whale buying of the token appears to be a contributor to its bullish trend.
The buying spree comes weeks after Arbitrum suffered a never-ending fear, uncertainty, and doubt (FUD) in the crypto community. Though the FUD resulted in a plummet in the ARB market, the asset has since rebounded and has picked up a rally.
Whales Buying Frenzy Sends Arbitrum Soaring
According to data from Lookonchain, whales have been on a buying spree on Arbitrum native token ARB. Nine whales purchased 12.4 million ARB tokens in the past seven days, equivalent to $21 million. Meanwhile, eleven other whales still hold a huge sum of ARB tokens, and only three sold 22.8 million ARB tokens worth $38 million.
The massive buying spree by whales suggests they are bullish on Arbitrum’s potential to revolutionize the Ethereum ecosystem. Arbitrum aims to reduce congestion on the Ethereum network as a scaling solution by enabling faster and cheaper transactions.
Its innovative design uses a unique roll-up technology aggregating multiple transactions into a single batch, allowing for faster settlement times and reducing gas fees.
The roll-up technology has attracted significant interest from Ethereum developers and enthusiasts, who believe it could help Ethereum scale meet the growing demand for decentralized applications (dApps) and non-fungible tokens (NFTs).
The current bullish sentiment surrounding Arbitrum and ARB tokens suggests that there could be significant gains for early investors. As the Ethereum network continues to grow and evolve, layer-two solutions like Arbitrum will likely become increasingly important, providing a scalable and efficient infrastructure for decentralized applications.
ARB Surges 44% In The Past Week
After surviving a bearish-filled weekend weeks ago, ARB is currently in the green, up by 44% in the last 7 days. The asset’s price has moved from trading as low as $1.17 on April 10 to trading nearly at $2 with a trading price of $1.72 at the time of writing. ARB is currently up by 6.3% in the last 24 hours.
ARB’s market cap has also surged, moving the token rise from ranking at #41 to ranking #32 today in terms of market capitalization among other cryptocurrencies in the global crypto market.
In the past 7 days, over $500 million has been added to the asset’s market capitalization. Its market cap currently sits at $2.2 billion, up 38% in the last 7 days.
Notably, the massive whale buying indicates smart money is bullish on the project’s prospects. As more developers and users flock to the platform, the demand for ARB tokens is expected to increase.
Featured image from Unsplash, Chart from TradingView