Arbitrum Records A Strong And A Volatile Airdrop, What’s Next For ARB
A Decentralized Autonomous Organization (DAO), Arbitrum recently announced the launch of the native token on their platform, ARB.
To create hype and bring more users to the platform, Arbitrum announced an airdrop for the token. Turns out, the situation has made things quite extreme around the ARB token.
The recent trading session has proven to be extreme for ARB as the latest move has made the token extremely volatile.
Arbitrum’s Utility Keeps Growing
The Arbitrum protocol has been launched through the Ethereum blockchain that exists as a layer-2 scaling solution. The network is quite prominent in the cryptocurrency industry and its user base is constantly rising.
Using the protocol, the users have access to transactions that are very cheap and fast. The network had previously teased that they were planning to turn their network into a DAO.
The protocol was already working on the process of becoming a DAO and on Thursday, it confirmed taking the necessary steps to do it.
While announcing the launch of the DAO, the platform announced that they had launched an airdrop. They announced that they would be carrying out an airdrop that would include more than 1 billion ARB tokens.
They confirmed that only the users of the network would be able to become part of the airdrop.
Performance of the ARB Token
The data from TradingView for the ARB token shows that as the airdrop event took place, the trading price of the token surged tremendously.
The trading price of ARB tokens went all the way up to $9 per ARB. However, the price of the token plunged tremendously in a matter of an hour. The report shows that the trading price of ARB fell to a low of $1.10.
ByBit, a major crypto exchange revealed that the trading price of the token went as high as $14 on their platform.
The recent tracking of the ARB token shows that the price of the asset was $1.35 per ARB. The market valuation of the ARB token currently stands at a high of $1.7 billion.
The data from CoinGecko shows that the ARB token is the 40th largest cryptocurrency in the market in terms of market valuation.
As for the total supply, the teams at Arbitrum have confirmed that the total supply they have set for the token is as much as 10 billion. This shows that the overall diluted market valuation of the token now stands at $13.5 billion.
Why were the Tokens Dumped?
If the trading price of the token were to be around $9 or $14, then the fully diluted market valuation of the token would have been much higher.
According to the claims, the valuation could have been around $140 billion at max, bringing it up to 15-24% of the total valuation of Bitcoin.
The growth recorded by the Arbitrum protocol is massive because of its utilities and low transaction fees. The weekly transaction volume has also continued rising on the protocol.
The data shows that for the current week, the transaction volume has surged over the 1.2 million mark.
As the token’s price surged to a higher level, it was only a matter of time before the users would start dumping the tokens to generate profits. This is exactly what was done and that resulted in pulling the token’s price lower.
As the airdrop was launched, many people participated in the event, which pushed its price higher. However, it was obvious that they were going to sell the token to generate profits, which they did.
Future of the ARB Token
Because the token is new, there is not much data as history that can help the analysts to set a forecast or build speculations around that.
However, analysts are confident that the trading price of the ARB token will rise because of the mass adoption of the Arbitrum protocol. The network’s total value locked (TVL) has been rising ever since it was launched. So far, the network’s TVL has surged over $3.5 billion. This means that the token’s adoption is rising, which would eventually help its price grow stronger in the future.
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