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Uniswap On Arbitrum Nears $150 Billion In Swap Volume

Uniswap, one of the world’s largest decentralized exchanges (DEX) by total value locked (TVL), is approaching a major milestone on Arbitrum, the largest layer-2 by TVL on Ethereum.

According to data from Dune Analytics shared by Uniswap Labs, Uniswap on Arbitrum is on the cusp of surpassing a staggering $150 billion in total swap volume.

Riding The DeFi Boom

As of April 25, Uniswap had facilitated over $146 billion in cumulative swap volume on Arbitrum alone. The number has gradually increased over the past three years since June 2021, when it was deployed on Arbitrum, looking at on-chain data. 

Uniswap swap volume on Arbitrum | Source: Dune Analytics

By August 2021, Uniswap was processing less than $5,000 in swap volume. After that, they steadily picked up momentum throughout the crypto bear run of 2022. Notably, a sharp uptick from October 2023 coincided with the start of the crypto boom that eventually propelled Ethereum to over $4,000 in Q1 2024.

The rising swap volume on Arbitrum reflects the increasing preference for Decentralized Finance (DeFi) solutions. As Uniswap on Arbitrum nears $150 billion, more users are increasingly turning to the popular DEX to trade, all without giving up control of their assets.

The surging popularity of Uniswap on Arbitrum can be partly attributed to significantly lower transaction fees compared to the Ethereum mainnet.

Through Arbitrum, the optimistic roll-up solution, swappers enjoy low transaction fees. They can also trade from a scalable environment secured by the Ethereum mainnet. 

Ethereum developers recently implemented Dencun, introducing a new transaction format called “blobs.” Because of this, layer-2 solutions can store large chunks of data off-chain, reducing the mainnet bloat. Subsequently, fees have been lowered, drastically enhancing the user experience for Arbitrum and other layer-2 users like Base and Optimism.

Uniswap V4 And United States Wells Notice

Following Dencun’s activation, Uniswap Labs plans to deploy v4. This iteration introduces features like Hooks that developers say will make the DEX even more efficient and flexible. The launch is set for this year.

Uniswap price trending sideways on the daily chart | Source: UNIUSDT on Binance, TradingView

Though Uniswap V4 is huge for the DEX and DeFi as a whole, the United States Securities and Exchange Commission (SEC) ‘s decision to issue a Wells notice is a setback.

The regulator intends to sue. However, the founder, Hayden Adams, responded in a post on X that they are ready to fight.

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Arbitrum’s Massive $107 Million Token Unlock Threatens To Send Price Below $1

Arbitrum (ARB) runs the risk of a significant price decline due to its upcoming token unlock on April 16. These token unlock events are known to be a recipe for high volatility because of what could happen in the aftermath of their occurrence. 

$107 Million Arbitrum Tokens Set To Be Unlocked

Data from TokenUnlock shows that 92.65 million Arbitrum tokens (3.49% of its circulating supply) are set to be unlocked on April 16. 56.13 million ($65.10 million) of these tokens will be distributed to the team, future team, and advisors, while the remaining 36.52 million ($42.36 million) will be distributed to investors. 

Token unlocks are usually followed by a wave of massive sell-offs from the beneficiaries, which causes the token’s price to drop. As such, Arbitrum’s price could also suffer the same fate once these tokens are distributed. However, this won’t be the first time, considering Arbitrum suffered a significant price decline during its last token unlock on March 16. 

Data from CoinMarketCap shows that Arbitrum’s price, which closed the previous day at above $2, dropped to $1.8 on March 16. However, it is worth noting that the magnitude of this month’s token unlock is nothing compared to last month’s, when 1.11 billion Arbitrum tokens (41.89% of its circulating supply) were unlocked. 

Therefore, the impact of any potential sell-off on the market might not be as severe as the last time. Despite that, Arbitrum still risks dropping below the $1 support level for the first time in a long while, as it is currently hovering around that price range. 

Other Token Unlocks To Watch Out For

$76.96 million worth of Axie Infinity (AXS) tokens (7.6% of circulating supply) will also be unlocked this week on April 17. 3.10 million of these tokens will be distributed as staking rewards, while 6.08 million and 1.69 million tokens will be distributed to the team and ecosystem fund, respectively. 

Meanwhile, like Arbitrum, Apecoin (APE) is another token that risks dropping below $1 with its upcoming token unlock on April 17. $18.57 million worth of Apecoin tokens (2.48% of circulating supply) will be unlocked, with most of these tokens going to the Yuga Labs founder. A significant drop in Apecoin’s price could further compound the bearish outlook of the Yuga Labs ecosystem, as the Bored Ape NFT is already down 90% from its peak. 

Arbitrum price chart from Tradingview.com

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Arbitrum Token Sell-Off: Whales Transfer $58M To Exchanges Following Unlock, ARB Price Reacts

On Saturday, March 16, the Layer 2 protocol Arbitrum (ARB) unlocked 1.1 billion ARB tokens as part of its 2024 roadmap. This event led to a significant decline in the native token’s value, with losses of up to 18% reported over the past week. 

In the past 24 hours, more whales have been sending ARB tokens to exchanges for selling, indicating a potential further drop in the protocol’s prices. This token unlocking marks the beginning of a four-year phased process, releasing a specific number of tokens every four weeks until 2027.

11 Whales Dump $58 Million Worth Of ARB Tokens

Following the massive unlocking of ARB tokens, analysis firm Lookonchain revealed that 11 whales deposited 34 million ARB tokens (equivalent to $58 million) into exchanges. 

Additionally, on-chain data provider “The Data Nerd” noted that trading firm Wintermute has been continuously depositing ARB tokens for the past 48 hours, potentially for selling purposes. 

The data provider notes that digital asset trading firm Wintermute now holds only 7.22 million ARB tokens worth $12.35 million, indicating that they have already deposited or sold $18.12 million worth of ARB over the past few days.

The ARB token has been on a 29% downtrend since reaching its all-time high (ATH) of $2.39 on June 12, 2024. Following the unlock event, ARB traded as high as $1.96 but dipped to $1.61 within 48 hours. 

The token has managed to reclaim the $1.68 level despite being in the red zone over the past 24 hours if the price drops further, ARB’s potential support walls are identified at $1.56, $1.46, and potentially as low as $1.32.

Arbitrum Post-Unlock Journey 

NewsBTC reported that there has been only one previous unlock event for ARB tokens. On the first day after the unlock, ARB experienced a 3% increase, indicating positive market sentiment and initial demand. 

However, the token’s price gradually declined, reaching a low of -21% approximately 21 days after the unlock event. Interestingly, around the 25-day mark, the price began significantly recovering, surging by 19% above the unlock-day level. 

These patterns suggest that while Arbitrum may face initial downward pressure post-unlock, there is potential for recovery and positive price movement in the following weeks.

The future trajectory of ARB’s price action remains uncertain despite experiencing a 15% drop from its first unlock day. Drawing from the past unlock event, if historical patterns hold, there may be a further 6% decrease, aligning with the previous 21% drop observed 25 days after the first Arbitrum unlock event. 

This hypothetical scenario would place Arbitrum at $1.57, indicating a favorable mid-term uptrend structure.

However, it is crucial to note that past patterns do not guarantee identical outcomes in current price trading. Nevertheless, analyzing historical data can provide valuable insights and help understand and assess potential price movements.

Arbitrum

Featured image from Shutterstock, chart from TradingView.com

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Arbitrum (ARB) Faces Potential Selling Pressure As 1 Billion Tokens Become Unlocked In March

Arbitrum, the cryptocurrency network designed as a scalability solution for the Ethereum blockchain, has recently experienced a notable price correction, resulting in a drop in its native token, ARB. Over the past 24 hours, the token’s value dipped to $1.84, marking a retracement of 5%. 

As February draws to a close, attention is now turning to the potential downside price action expected in March as a substantial number of ARB tokens are set to be unlocked.

Major Unlock Event Looms For Arbitrum

According to a recent announcement on X (formerly Twitter), more than 1.11 billion ARB tokens, estimated at $1.24 billion, are scheduled to be released on March 16, 2024. 

This unlocking event signifies the beginning of a four-year phased unlocking process, which will gradually release a certain number of tokens every four weeks until 2027. 

The total number of tokens in circulation for Arbitrum currently stands at 1.275 billion, meaning the unlock will release an equivalent of 87% of the circulating supply, nearly quadrupling it to 2.375 billion tokens.

Token unlocks, especially when they exceed the average daily trading volume, can act as bearish catalysts for token prices as they introduce additional liquidity into the market. This influx of tokens can create inflationary pressures, leading to increased volatility and speculative trading. 

However, to fully understand the potential impact on ARB, it is crucial to examine historical data that sheds light on the token’s price performance following previous unlocks.

According to Token Unlocks data, there has been only one cliff unlock event for ARB tokens in the past. Analyzing the price impact that followed this unlock provides valuable insights.

On the first day after the unlock, the price of ARB experienced a 3% increase, indicating positive market sentiment and initial demand. Subsequently, the token’s price gradually declined, reaching a low of -21% approximately 21 days after the unlock event.

However, at around the 25-day mark, the price began to recover significantly, skyrocketing by 19% above the unlock-day level. 

These historical patterns suggest that while ARB may face initial downward pressure following the upcoming unlock, there is a potential for recovery and positive price movement in the following weeks. Nevertheless, it is important to note that market conditions and investor sentiment can vary, and past performance may not necessarily indicate future outcomes. 

ARB Price Analysis

In the event of a potential 20% price decline from the current level of $1.84, ARB may face selling pressure and a lack of demand. To safeguard its current all-time high (ATH) of $2.4, bulls must defend major support walls.

Forecasting a potential dip to around $1.44, the next crucial support level for bulls to monitor is $1.42. This support level would be the last line of defense before a potential further decline to the subsequent support line at $1.25. If both levels fail to hold, the $1 mark would be at risk, with the last support for bulls at the $1.102 level.

It is important to note that the token unlock event’s outcome and ARB’s subsequent price action remain uncertain. 

Additionally, the crypto market is bracing itself for the Bitcoin (BTC) halving event, which could introduce additional volatility to the overall market as the event draws nearer.

Arbitrum

Featured image from Shutterstock, chart from TradingView.com

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How To Buy Sell and Trade Tokens On The Arbitrum Network

The Arbitrum (ARB) network is a Layer 2 scaling solution for Ethereum that aims to address the scalability and high transaction fees. It is developed by Offchain Labs and utilizes a technology called Optimistic Rollups to achieve its objectives.

Optimistic Rollups work by processing most transactions off-chain and then periodically submitting a summary of those transactions to the Ethereum mainnet. This approach reduces the transaction costs significantly and increases the throughput of the network while maintaining the security guarantees of the Ethereum mainnet.  

In other words, the optimistic rollup feature allows Ethereum smart contracts to scale by passing messages between smart contracts on the Ethereum main chain and those on the Arbitrum second layer chain. Much of the transaction processing is completed on the second layer, and the results of this are recorded on the main chain — drastically improving speed and efficiency. 

One of the key features of the Arbitrum network is its compatibility with existing Ethereum smart contracts. Developers can deploy their contracts on the Arbitrum network with minimal modifications, allowing for easy migration of decentralized applications (dApps) from Ethereum to Arbitrum.

Also, the arrival of the Ethereum network introduced a groundbreaking transformation in the realm of blockchain technology, providing a platform for the creation of decentralized applications (dApps) and propelling the growth of decentralized finance (DeFi). Nevertheless, as Ethereum’s preeminence soared, it encountered hurdles related to scalability and exorbitant transaction fees. 

This is where the Arbitrum network enters the picture as a Layer 2 scaling solution, poised to tackle these challenges while ensuring seamless integration with Ethereum’s ecosystem. In this article, we will explore the core features of the Arbitrum network and examine its immense potential in the Ethereum ecosystem.

Features Of Arbitrum Network

The promise of Scalability:

Scalability has long been a bottleneck for Ethereum, causing network congestion and skyrocketing transaction fees during times of high demand. Arbitrum tackles this challenge by implementing Optimistic Rollups, a technology that allows for most transactions to be processed off-chain. By aggregating multiple transactions into a single summary, ARB achieves significant scalability improvements, enabling faster confirmation times and a higher throughput. This scalability boost unlocks the potential for a more efficient and seamless user experience on the Ethereum network.

Ecosystem and Adoption: 

The Arbitrum network has garnered significant attention and interest within the Ethereum ecosystem. Several prominent projects and protocols have announced plans to deploy on Arbitrum or explore integrations. This growing ecosystem includes decentralized exchanges (DEXs), lending platforms, gaming applications, and more. 

The increased adoption of Arbitrum provides users with a wider range of options for interacting with decentralized applications (DApps) and accessing various DeFi services.

Smart Contract Execution:

Arbitrum Network makes use of a technique called optimistic execution to process smart contracts. It assumes that most transactions are valid and executes them off-chain. This enables the  network in providing fraud proofs, which allows anyone to challenge invalid transactions by submitting evidence to the Ethereum mainnet. This approach enables efficient and secure smart contract execution.

Decentralization and Security: 

While Arbitrum relies on the Ethereum mainnet for final settlement and security, it maintains a high level of decentralization and security. By leveraging Ethereum’s robust consensus mechanism, Arbitrum benefits from the security guarantees of the Ethereum network. The periodic submission of transaction summaries to Ethereum ensures that any potential fraudulent activity can be detected and resolved.

Seamless User Experience: 

Using the Arbitrum(ARB) network is designed to be seamless for users. They can continue using their existing Ethereum wallets, such as MetaMask, to interact with the Arbitrum network. This familiarity and compatibility make it easier for users to transition from Ethereum to Arbitrum and enjoy the benefits of improved scalability and reduced transaction fees without significant changes to their workflows.

What Makes Arbitrum Unique?

The Arbitrum (ARB) network is designed to provide an easy-to-use platform developers can use to launch highly efficient and scalable Ethereum-compatible smart contracts. It offers a range of exciting possibilities for developers and users alike. Some examples of what can be done on the network include:

High EVM compatibility

Arbitrum(ARB) is considered to be one of the most EVM-compatible rollups. It’s compatible with the EVM at the bytecode level, and any language that can compile to EVM works out of the box — such as Solidity and Vyper. This makes it easy to build on since developers do not need to get to grips with a new language before building on Arbitrum.

Decentralized Finance (DeFi) applications:

The Arbitrum (ARB) network can be used to build and run DeFi applications, such as decentralized exchanges (DEXs), lending and borrowing platforms, and stablecoin systems. These applications can benefit from the network’s fast transaction processing times and low gas fees, enabling efficient and affordable transactions.

Low  transaction fees

As a Layer 2 scaling solution for Ethereum, Arbitrum isn’t just designed to boost Ethereum’s transactional throughput, it also minimizes transaction fees at the same time.

Thanks to its extremely efficient roll-up technology, Arbitrum is able to cut fees down to just a tiny fraction of what they are on Ethereum, while still providing sufficient incentives for validators.

Well-developed ecosystem

Arbitrum is already working with a wide variety of Ethereum DApps and infrastructure projects, including the likes of Uniswap.

Cross-Chain Interoperability

The Arbitrum (ARB) network can also be used to enable cross-chain interoperability between different blockchains. This could allow for the seamless transfer of assets and data between different blockchain ecosystems, enabling greater interoperability and connectivity across the entire blockchain space.

The Arbitrum network’s fast transaction processing times, low fees, and security and decentralization features make it a compelling choice for a wide range of use cases.

How To Get Started on The Arbitrum Network

To buy and sell tokens on the Arbitrum (ARB) network, you must first get a metamask wallet. MetaMask is a popular browser extension wallet commonly used for interacting with blockchain networks like Ethereum. It is available as a browser extension for popular browsers such as Google Chrome.

Ensure your Metamask Wallet has been added to your browser as an extension by clicking on the ‘Add to Chrome” icon on the top right as shown below:

Arbitrum 1

Once installed and set up, MetaMask allows users to manage their cryptocurrency wallets, interact with decentralized applications (DApps), and securely execute transactions on supported blockchain networks directly from their browsers. (Make sure to write down your seed phrase on a piece of paper and keep it in a safe place. Do not store it online or on your device).

Next, add the ARB network to your Metamask wallet by following the instructions provided on the Metamask website here.

Trading On the Arbitrum (ARB) Network

In order to execute trades on the ARB network, you will need to fund your wallet with Ethereum (ETH) so as to enable you to cover gas fees even though the majority of the trading activity takes place on the Arbitrum layer 2 solution. This is because the Arbitrum network periodically submits transaction summaries and proofs to the Ethereum mainnet, which requires paying Ethereum gas fees. 

You can buy ETH on centralized exchanges such as Binance, copy your wallet address from Metamask, and then send the ETH from Binance to your Metamask wallet. 

You can also purchase ETH directly within the Metamask wallet using traditional payment methods such as credit or debit cards, etc.

Just click on the “Buy/Sell” button within Metamask to open the interface. Here, you can put how much ETH (or any other token) you want to buy in terms of dollar terms, pick your payment method, and then click “Buy”.

Note that to buy crypto directly within Metamask, you will need to provide info such as your country and state. However, it is a straightforward process that only takes a minute.

Metamask wallet

It’ll only take a couple of minutes at most for your ETH to arrive in your wallet. Once the ETH arrives, you are all set to begin trading tokens on the ARB network. So, head over to UniSwap to get started on your trading journey.

How To Trade Tokens On The ARB Network Using UniSwap

Uniswap is a decentralized exchange (DEX) protocol built on the Ethereum blockchain. It allows users to trade Ethereum-based tokens directly from their wallets without the need for intermediaries or traditional order books. Uniswap offers users a simple and straightforward way to buy and sell a wide variety of tokens.

Endeavour to be on the right Uniswap website to protect your wallet from any fraudulent activity.  The first step is clicking on the “launch app” button at the top right corner, as shown in the image below:

Uniswap

The next step is clicking on the connect wallet option on UniSwap at the top right corner, as shown in the image below:

Arbitrum trading

Connect to your preferred wallet as shown below. (In this case, it’s Metamask):

Uniswap trading

Once connected, switch Metamask to the ARB network. (If you’re already on the ARB network, you do not need to switch):

Token trading

After connecting MetaMask to the ARB network, go to UniSwap, and then you can start trading on the ARB network using UniSwap. 

The next step is to select your preferred tokens on the UniSwap interface and since Uniswap operates on a token to token trading model, click on the “select token” button to select the trading pair you want to trade against. 

For example, if you want to buy USDT using ETH,  select  ETH – USDT, enter the amount, then click on “swap” or “trade now” and confirm the transaction in your Metamask wallet. You can view the tokens in your wallet’s asset list.

Arbitrum 7

Buying and Selling Tokens with the Metamask Wallet

ARB Network users can also buy and sell tokens using the Metamask extension wallet already connected to the ARB network. 

To do this, make sure you’re connected to the ARB network and have ETH to swap and pay for gas fees. Then, navigate to the “Swap” button as shown below. This will take you to the Swap interface inside Metamask.

Buying Ethereum ETH

Using the image above as a guide, you can also search for tokens using the name or the contract address, just like on UniSwap. Input the amount of ETH you want to swap, confirm that you have the correct token, and then click “Swap.” Once the transaction is confirmed, the tokens you just bought will be sent to your wallet.

Tracking Token Prices on The Arbitrum  Network

Users of the Arbitrum (ARB) network can take advantage of on-chain tools like Dexscreener to gain access to comprehensive market insights for specific tokens. These insights include price data and contract information, empowering users to make well-informed trading decisions based on reliable and up-to-date information. 

With Dexscreener on the Arbitrum network, users can stay informed about token metrics and market dynamics, enhancing their trading strategies and overall trading experience.

Dexscreener

Dexscreener offers a variety of advantageous features tailored to users on the Arbitrum network. Among these features, an exceptional one is the charting functionality, which delivers both real-time and historical price data for a wide range of tokens. 

By utilizing these charts, users gain valuable insights into price trends, trading volumes, and other pertinent metrics. This enables them to pinpoint potential entry or exit points for their trades with precision and confidence. 

Take a look at the example below:

Arbitrum Dexscreener

Conclusion

In conclusion, the Arbitrum network offers a compelling ecosystem for buying, selling, and trading tokens, providing several notable advantages over other platforms. With its seamless integration of on-chain tools like Dexscreener, users gain access to detailed market insights, real-time price data, and historical charts, enabling them to make informed trading decisions with confidence.

 

Additionally, Arbitrum’s scalability and low transaction fees enhance the overall trading experience, ensuring quicker and more cost-effective transactions. By leveraging the power of the Arbitrum network, traders can enjoy a secure, efficient, and feature-rich environment that empowers them to navigate the world of token trading with ease.

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Arbitrum (ARB) Rise: Daily DEX Volume Surges, Outpacing Ethereum By $400 Million

Arbitrum, a prominent Layer-2 (L2) scaling solution, has been on a remarkable upward trajectory since the launch of its native token, ARB, in March 2023. The past 30 days witnessed a staggering 74% surge in ARB’s value, underscoring the growing market interest in the protocol.

Notably, Arbitrum’s daily decentralized exchange (DEX) volume has experienced a significant surge, propelling the protocol to surpass Ethereum (ETH) for the first time in this key metric. 

This milestone highlights Arbitrum’s increasing adoption and recognition for its scalability within the decentralized finance (DeFi) ecosystem.

Arbitrum Sets New DEX Records

According to data from DefiLlama, Arbitrum’s daily DEX volume reached an impressive $1.834 billion over the past 24 hours, surpassing Ethereum’s volume of $1.444 billion. Analyzing DefiLlama’s data, it becomes evident that Arbitrum’s growth extends beyond daily DEX volume alone. 

The weekly change in ARB’s value soared by 32.58%, showcasing the token’s strong performance in the market. Moreover, Arbitrum’s seven-day volume reached an impressive $6.804 billion, indicating robust trading activity on the protocol.

Arbitrum

In terms of total value locked (TVL) in DEX, Arbitrum accounted for $1.297 billion, constituting 33.40% of the total TVL. In comparison, Ethereum’s TVL stood at $5.92 billion, making up 26.29% of the total. This demonstrates Arbitrum’s growing prominence as users increasingly recognize its potential for efficient and secure decentralized trading.

ARB’s Financial Metrics Soar

Further demonstrating the growth of the protocol’s ecosystem, token terminal data shows that Arbitrum’s market capitalization (in circulation) has increased by an impressive 83.84% to $2.56 billion. 

The revenue generated by Arbitrum over the past 30 days has also experienced remarkable growth, with a 79.82% increase to reach $11.66 million. 

Furthermore, looking at the fully diluted market capitalization, Arbitrum has witnessed an identical 83.84% rise to reach $20.07 billion. 

Arbitrum’s revenue on an annualized basis has seen a significant boost, surging by 101.67% to reach $141.81 million. This figure represents the projected revenue for a full year based on the current monthly revenue, underscoring the protocol’s sustained growth.

In terms of fees generated, Arbitrum’s 30-day figures have surged by 79.82% to reach $11.66 million, demonstrating the protocol’s ability to capture a significant share of transactional fees within its ecosystem. 

On an annualized basis, fees have soared by 101.67% to reach $141.81 million, further validating the protocol’s revenue growth and economic potential.

Arbitrum

Nevertheless, the protocol’s native token, ARB, is trading at $1.8962, down over 8% in the past 24 hours and below its all-time high (ATH) of $2.11 set on Thursday. Despite this pullback, it is still up 36% over the past 14 days, demonstrating the token’s bullish momentum.

Featured image from Shutterstock, chart from TradingView.com

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Arbitrum (ARB) Maintains Impressive 30% Price Uptrend, Analyst Predicts Breakout Above $2

Arbitrum (ARB), a prominent Layer 2 (L2) protocol, has emerged as one of the top gainers in the past month, experiencing a remarkable surge of 59%. Over the past 7 days, the token has grown substantially over 31%, propelling it to reach a new all-time high (ATH) of $1.8391 on Monday. 

Arbitrum’s Market Capitalization Surges To $2.21 Billion

The impressive price surge of ARB reflects the growing interest in the protocol and its native token within the Layer 2 ecosystem. This surge is evident when examining the data provided by Token Terminal, a leading analytics platform. 

According to Token Terminal’s data, Arbitrum’s market capitalization (circulating) is $2.21 billion, marking a significant increase of 56.18%. 

Additionally, the revenue generated by the protocol over the past 30 days amounts to $11.31 million, representing a substantial surge of 87.74%. 

The fully diluted market capitalization is $17.33 billion, reflecting the market’s positive sentiment toward the protocol’s potential. The revenue on an annual basis reaches $137.63 million, exhibiting an impressive growth of 106.63%.

Moreover, the strong performance of the market indicators, such as the P/F ratio (fully diluted) at 125.95x and the P/S ratio (fully diluted) at 125.95x, indicate robust investor confidence. 

The fees generated by the protocol over the past 30 days amount to $11.31 million, representing a significant increase of 87.74%. Additionally, the annualized fees reached $137.63 million, demonstrating a substantial growth of 106.63%. 

Furthermore, the data reveals that Arbitrum has a strong user base, with an average of 153,3100 active daily users over the past 30 days, highlighting its popularity and adoption. Even more encouraging is that a prominent crypto analyst foresees continued growth in price action for ARB.

Clear Uptrend In ARB Signals Potential Breakout

Renowned crypto analyst Michael van De Poppe has identified a clear and promising uptrend in the cryptocurrency ARB. 

Through his technical analysis, van de Poppe observes that the token has been consistently experiencing “beautiful retests” of previous resistance levels, which have now transformed into strong support zones.

If the current price trajectory continues, Michael van De Poppe suggests that investors should keep an eye on a potential optimal “go-to zone” for ARB between $1.50 and $1.60. 

This zone represents a strategic level where the token may experience a retest before deciding to break the psychological barrier of $2.

It remains to be seen if this prediction will come true and how ARB’s price action will develop through the first half of 2024.

ARB

Featured image from Shutterstock, chart from TradingView.com 

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Arbitrum Network Faces Major Outage, ARB Token Faces 4% Decline

Arbitrum (ARB), a prominent Ethereum scaling solution, encountered a significant downtime event on December 15, according to the network’s status page. 

The incident prompted an immediate investigation into the root cause and the deployment of a fix. As of the time of writing, the Arbitrum One network remained inaccessible for over 60 minutes due to sequencer and feed issues.

Arbitrum Struggles With Network Downtime

The status update from Arbitrum acknowledged the problem, stating that the Arbitrum One Sequencer and Feed stalled at 10:29 AM ET amidst a notable surge in network traffic. 

Notably, Martin Köppelmann, co-founder of Gnosis, alleged that the outage experienced within the Arbitrum network was a result of ordinals. Köppelmann remarked that the stress testing of various blockchains using ordinals had led to the disruption, stating, “Ordinals stress testing various blockchains is certainly entertaining to watch. Now they brought the Arbitrum sequencer down.”

In addition to the sequencer and feed issues, Arbitrum also encountered a halt in block production, ceasing to generate new blocks approximately 1.5 hours ago. The impact of this stoppage on the network’s overall functionality and transaction processing remains a concern for users and stakeholders.

The investigation into the root cause of the downtime is crucial for understanding the underlying technical issues and preventing similar disruptions in the future. Users and industry participants eagerly await the post-mortem analysis from Arbitrum, which will provide a detailed account of the incident and the proposed remedial measures.

ARB Thrives Despite Market Volatility

Over the past 24 hours, the ARB token experienced a decline of 4.94%, reflecting short-term market fluctuations. However, the token has demonstrated relative stability when considering its performance over longer timeframes.

Arbitrum

In the last 180 days, ARB has shown a significant growth of 17.76%, indicating a positive trend for long-term investors.

According to Token Terminal data, Arbitrum currently boasts a circulating market capitalization of $1.49 billion, with a fully diluted market capitalization of $11.69 billion. 

Revenue generated by the project has experienced significant growth over the past 30 days, with a notable increase of 68.00%. The revenue projection on an annualized basis stands at $85.97 million, highlighting the project’s ability to generate sustainable income.

Moreover, Arbitrum has witnessed a rise in active users, with a daily average of 166.37 thousand participants over the past 30 days. This growth in user adoption suggests increasing interest and utilization of the Layer 2 scaling solution.

Featured image from Shutterstock, chart from TradingView.com 

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Radiant Capital’s Earnings Exploding, Time To Load The RDNT Bag?

Radiant Capital, a lending and borrowing protocol for users to borrow various assets across multiple chains, is rapidly closing in on Aave, looking at earnings data over the past six months.

Radiant Capital Earnings Rising: What’s The Trigger?

According to Token Terminal statistics on November 8 shared by one user on X, @Flowslikeosmo, Radiant Capital generated $5.8 million in revenue despite a relatively lower level of liquidity than Aave. @Flowslikeosmo, who claims to be a crypto researcher, said Radiant Capital’s earnings will likely explode in the upcoming sessions, especially once the 2.8 million ARB begins to be deployed.

Radiant Capital earnings | Source: Token Terminal via @Flowslikeosmo on X

Radiant Capital is a popular cross-chain decentralized money market through which users, regardless of their choice blockchain, can either lend their assets and earn passive income or borrow assets trustlessly. This way, the decentralized finance (DeFi) protocol has opened up liquidity and boosted access to multiple blockchains.

Related Reading: Dogecoin In Tight Zone: Why A Rally Will Happen If DOGE Clears $0.076

To perform effectively, the protocol relies on LayerZero, which enables trustless and decentralized communication between blockchains using Oracle Relays, allowing platforms to be more interconnected and ledgers to be more interoperable. As Radiant Capital offers services, the DeFi protocol generates earnings or revenue primarily from fees. 

The platform charges a protocol fee on all transactions. Earnings from this allow the team to be operational while allowing the protocol to generate revenue.

However, it should be noted only 15% of this fee is used to cover operational expenditure, with the rest redistributed to users as yield. Besides, there are fees billed to users taking flash loans. The protocol rewards providers with RDNT to incentivize liquidity provision, depending on the amount provided and the duration locked.

ARB Airdrop, Will RNDT Rally To New 2023 Highs?

Earnings generated depend on the activity level, directly influencing protocol fees accrued and the number of users taking flash loans. Following Radiant Capital’s recent announcement that it plans to airdrop 2 million ARB following the Arbitrum DAO‘s approval of a proposal first floated in late September, activity could skyrocket in the coming months, boosting earnings.

Moreover, the protocol’s liquidity is expected to increase with this approval. The ARB airdrop will be used to incentivize liquidity provision. Additionally, Radiant Capital will strike more partnerships, allowing it to expand to other chains, including Ethereum and Arbitrum.

Radiant Capital price trending upward on the daily chart | Source: RDNTUSDT on Binance, TradingView

According to Dune Analytics data, the number of RDNT holders continues to rise, mirroring its general price performance. Thus far, RDNT is up 40% from October lows. The immediate resistance level at $0.33 must be broken for the coin to rally, even registering new 2023 highs.

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Arbitrum: What’s In Store For ARB Token After Unlock?

Arbitrum (ARB) is gearing up for a monumental token unlock scheduled for March 2024, poised to inject a staggering 1.11 billion ARB tokens, worth approximately $907 million at current market prices, into the cryptocurrency market.

Token unlocks refer to the release of previously restricted or vested tokens into circulation. These events often have significant consequences on the price and sentiment surrounding a cryptocurrency. 

They can introduce inflationary pressure into the market and act as bearish catalysts, causing traders to closely monitor their schedules.

ARB Token Poised For Massive Potential Price Growth

Token analytics firm Token Unlocks recently conducted a comprehensive analysis of ARB’s price impact following previous unlocks. Their findings shed light on the market’s response to these events. 

According to their data, ARB experienced a 3% price appreciation on the first day of the unlocks. However, this initial uptick was followed by a prolonged three-week downtrend, during which the price dipped by more than 20%. Surprisingly, 25 days after the unlock, prices began a remarkable recovery, ultimately rising by nearly 19% from the unlock day.

Implications For The Market

The upcoming 2024 unlock poses both opportunities and challenges for the crypto market. The sheer magnitude of this release can be expected to exert downward pressure on ARB’s price in the short term, given the historical data. Traders and investors should brace themselves for potential price volatility.

Meanwhile, Layer-2 solutions have emerged as the dominant force in the cryptocurrency sector, witnessing extraordinary growth from $5 billion to $10 billion in just nine months. Arbitrum, along with Base, reportedly deserves much of the credit for this remarkable expansion. 

In a race for supremacy, Arbitrum overtook Optimism to become the world’s largest Layer-2 blockchain, with an impressive $5.3 billion in assets locked on its platform. Currently, Arbitrum controls over half of the funds locked in the Layer-2 market, while Optimism claims another 25.4% of the market share.

Key Moment For Crypto

The forthcoming ARB token unlock next year promises to be a pivotal moment for the cryptocurrency market. While it may initially introduce uncertainty and bearish sentiments, historical data suggests that ARB has the potential to rebound strongly in the weeks following the unlock. 

Furthermore, the rise of Layer-2 solutions, spearheaded by Arbitrum, highlights the ongoing evolution and growth within the crypto space. Traders and enthusiasts alike will be closely watching as this event unfolds and the market responds to this significant injection of ARB tokens.

With a current ARB price of $0.8485, as reported by CoinGecko, the cryptocurrency has seen a 2.9% increase in the last 24 hours and a notable seven-day rally of 9.0%.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Nansen

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Bullish Momentum Expected For ARB As Arbitrum Completes DAO Airdrop

The Arbitrum Foundation has just concluded its distribution of the ARB airdrop to decentralized autonomous organizations (DAOs) and it has triggered some positive expectations among the community.

DAOs Receive 90 Million ARB

Following the 1 billion ARB distribution that went to the community, the Arbitrum Foundation has executed the second stage of its airdrop. On Monday, the foundation announced that it was commencing the airdrop distribution to DAOs.

In total, over 90 million ARB were distributed to 125 DAOs with Treasure DAO receiving the highest allocation of the bunch. These tokens were sent out at a time when the price of the digital asset was trading around $1.32-$1.33, putting the fair value of the airdrops around $120 million. The Twitter thread below lists the 125 DAOs and how many tokens they received.

Following the airdrop, the price of ARB saw a slight uptick but this did not last long as the coin quickly resumed its downward trend. Its price briefly touched $1.35 in the early hours of Tuesday. However, as of the time of writing, it is back down to $1.31.

Arbitrum Still Has A Long Way To Go

The ARB airdrop to DAOs has so far not had the effect on the price of the digital asset as expected, but that has not eliminated the bullish expectations for the cryptocurrency. Analyst Jack Niewold took to Twitter to share that he expects ARB to flip the likes of XRP.

However, ARB is still trading sideways but this can also be attributed to the general market downtrend which has seen the majority of the market lose their gains from last week. If this slow momentum continues, then it is unlikely that ARB will meet the expectations for its price.

Arbitrum (ARB) price chart from TradingView.com

On the bright side, Arbitrum is still showing strength volume-wise. It is currently the third-highest behind Ethereum and BSC in terms of volume, DefiLlama data shows. Additionally, where Ethereum’s volumes have dropped over the last week by 2.53%, Arbitrum is up 11.74%.

ARB’s trading volume has unfortunately seen a decline over the last 24 hours. The cryptocurrency saw trading volumes of $558.8 million, a 27.64% decline from the previous day’s numbers. This shows a decline in interest for investors and has contributed to the downward trend that the token has experienced.

ARB’s price also fell below $1.3 briefly on Tuesday before recovering to $1.31. At this current price, the coin is seeing meager gains of 0.46% on the 24-hour chart but is down a significant 25% on the 7-day chart.