Tuesday, February 27, 2024

Arbitrum Price Prediction: ARB is listed on Binance and Coinbase – Can ARB Reach $10?

The ARB coin, freshly airdropped and runs the Arbitrum Decentralized Autonomous Organization (DAO), saw extremely high trading volatility on Thursday.

On Thursday, after airdropping slightly over 1 billion of its ARB token to network users, Arbitrum, a well-known layer-2 scaling solution on the Ethereum blockchain that enables quick and inexpensive transactions, officially changed its legal status to a DAO.

ARB/USD rose as high as $9 per token, according to TradingView, which cited Kraken data, before falling as low as $1.10 in as short as an hour.

On ByBit, prices reportedly rose as high as $14 per token.

According to CoinGecko, ARB/USD was most recently trading sideways at roughly $1.35 per token, giving it a market size of about $1.7 billion and placing it as the 40th largest cryptocurrency by market capitalization.

With a maximum supply of 10 billion ARB tokens, Arbitrum would rank ninth in completely diluted market capitalization with a fully diluted market capitalization at current prices of $13.5 billion.

Why Did ARB Dump?

Arbitrum’s thoroughly diluted market capitalization would have been enormous, between $90 and $140 billion at earlier highs in the $9 to $14 per token range, or between 15 and 24% of Bitcoin’s value.

Arbitrum is a remarkable protocol that is expanding quickly; this week, daily transactions exceeded 1.2 million for the first time.

Yet at this moment, it’s probably a stretch to say that Bitcoin is worth 15–24% of it.

In that regard, it shouldn’t be shocking that ARB tokens were later thrown onto the market as airdrop participants looked to profit.

Also, after the airdrop went live, many users tried to visit the websites, which caused both Arbitrum’s website and blockchain scanner to fail.

Because of this, some airdrop participants may have been scared into selling their tokens.

Price Prediction: Where Will ARB Go From Here?

It is challenging to predict the future price of ARB using technical analysis because there is a lack of price history information.

To predict where ARB will go next, it is probably wiser to keep an eye on movements in the Arbitrum network and ecosystem and the larger cryptocurrency market.

Massive airdrops, like the one just completed by Arbitrum, frequently increase the adoption of a protocol by creating a lot of buzz in the cryptocurrency community.

As previously mentioned, the number of unique addresses and daily transactions on the Arbitrum network have increased.

As more and more significant exchanges list the ARB token, increasing the enthusiasm surrounding the system, these good trends will probably continue in the coming weeks.

A key indicator for investors is whether cryptocurrencies’ total value locked (TVL) under smart contracts on the Arbitrum blockchain is still increasing.

DeFi Llama said it surpassed $3.5 billion on Thursday, setting a new record high.

Investors continue increasing their investments in DeFi protocols running on the Arbitrum blockchain.

That might encourage a rise in ARB, though it’s hard to predict how high as the market is still in a price-discovery phase.

Will ARB Ever Reach $10?

If good adoption trends in its network and the overall crypto market continue, ARB can reach $10 once more.

ARB bulls should get used to waiting their turn.

Although ARB being worth over 10% of Bitcoin remains a pipe dream, Bitcoin may need to reach $1 trillion in market cap or more before ARB becomes a $100 billion (completely diluted market cap) coin once more.

But if the US banking situation becomes worse, US economic growth gets worse, and the Fed starts a rate-cutting cycle in the second part of this year, Bitcoin might surpass $1 trillion once more this year.

So, the future appears promising for ARB.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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