Connect with us
Active Currencies 14728
Market Cap $2,622,380,475,725.82
Bitcoin Share 51.35%
24h Market Cap Change $2.10

Arbitrum [ARB]: Dismay, hope, and the scarcity of interaction

2min Read
Arbitrum [ARB]: Dismay, hope, and the scarcity of interaction

Share this article

  • ARB CEX transactions have been an eyesore as users preferred DEXs.
  • The initial hype around the token was nowhere near its earlier crest.

Users of Arbitrum [ARB], the native token of the burgeoning layer 2 scaling solution, have been caught between distress and glee since the protocol’s reward distribution. While many have praised the protocol’s efficiency and speed, concerns have been raised about actual participation with the token.

How much are 1,10,100 ARBs worth today?

Free is not always fair

In a 3 April examination of the ARB market, Santiment revealed that Arbitrum had the potential to end up like a project who airdropped tokens to early adopters but lacked trading activity. Needless to say, this sounded surprising especially as Abitrum recorded transaction hikes on numerous occasions.

However, the scrutiny of the activities showed that most of the volume existed on Uniswap’s [UNI] Decentralized Exchange (DEX). This, in turn, implies that transactions on Centralized Exchanges (CEXs) have been ravenous. CEX deposit was down 7.29% in the last 24 hours.

Arbitrum volume on Uniswap DEX

Source: Nansen

Furthermore, holders with a large portfolio seem to be the ones engaged in accumulation. But the action could only be because of the perception that ARB had bottomed around the $1 region.

Still, this set of investors did not seem committed to CEX trading activity or storage. According to Lookonchain, a whale recently bought $7.7 million worth of ARB and opted to split it between a DEX and CEX.

A situation like this still reflects the aforementioned observation of notable CEX trading history. However, addresses with 1,000 to 50,000 ARBs have declined accumulation or are following in the path of whales.

Arbitrum addresses data

Source: Santiment

Small, not mighty

Santiment’s insight interpreted the condition as a pattern of small investors who are not necessarily invested in the ecosystem but are optimistic about a price jump in the future. The report read: 

“The beneficiary community consists of small investors exploring the possibilities of platforms. They spend most of their time testing the creation of portfolio accounts and live in LAMBO’s hope.”

As a result of this side-to-side participation, the positive sentiment of the token was hit with a fall. At press time, the metric was down to 49.60. This meant that the feedback circulating on the social network was not splendid. 

Is your portfolio green? Check the Arbitrum Profit Calculator

Additionally, the Market Value to Realized Value (MVRV) ratio in the last seven days has also fallen to -14.38%. The metric evaluates the market cap and realized to determine market profitability and fair value.

Since the MVRV ratio was in the negative region, it means that most holders’ portfolios were down. However, it might be too soon to conclude that ARB is currently undervalued, since it’s only less than a month old.

Arbitrum positive sentiment and MVRV ratio

Source: Santiment


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.