Arbitrum’s ARB Token Surges Over 20% – Here is Why

In spite of a governance dispute, the ARB token from Arbitrum has shown a significant increase in value, rising by over 20% in the last 24 hours to reach $1.573.

Trading volume for ARB also saw a 204% increase during the same period, reaching nearly $2 billion. Several factors contribute to the bullish trend of ARB, including increased market share and utility, as well as whale accumulation.

One particular whale purchased 1.49 million ARB for 1,057 ETH (worth around $2.24 million) on April 14 at an average price of $1.5.

According to Lookonchain, this whale is worth keeping an eye on as they have traded 23 tokens, with 15 being profitable and a win rate of 65%, generating a total profit of over $7.3 million.

1/ A smart whale bought 1.49M $ARB with 1,057 $ETH ($2.24M) today, with an average buying price of $1.5.

This whale is well worth keeping an eye on.

Traded a total of 23 tokens, of which 15 tokens are profitable, with a win rate of 65%.

The total profit exceeds $7.3M! pic.twitter.com/8o7ue43LdN

— Lookonchain (@lookonchain) April 14, 2023

Other whales, such as Andrew Kang of Mechanism Capital, have also accumulated ARB.

Arbitrum’s sequencer generates cash flows for the treasury, contributing to the token’s value. As adoption grows, revenue is expected to improve, with the sequencer able to capture MEV in the future, thereby locking up supply and providing security.

While investing, growth prospects matter –

– Though it does not yet do so, the sequencer can also capture MEV in the future.

– Decentralized sequencing and $ARB staking will lock up supply and provide security.

— Kunal Goel (@kunalgoel) April 11, 2023

With a revenue of $10 million and profit of $3.7 million in Q1 2023, profits will be directed to the community-managed DAO, ArbitrumDAO.

Regarding market share, Arbitrum has outperformed its Ethereum L2 competitors, including Optimism, and currently has a TVL near its all-time high of $2.31 billion.

Comparatively, Optimism’s TVL trails behind at $949.21 million. Despite the recent AIP-1 debacle, ARB is undervalued compared to Optimism, with just a 20% premium, according to a researcher from Messari.

At the time of writing ARB is trading at $1.67 after a 23% increase in the past 24 hours and around 40% on the weekly chart. The trading volume within the last day peaked at $2.72 billion.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.