Arbitrum flips Optimism on these fronts – What about ARB prices?

• ARB’s daily active addresses increased, but its transaction count dropped.
• Arbitrum was down by over 4% in the last 24 hours, and indicators were bearish.

Arbitrum’s [ARB] network activity has been growing for quite some time, allowing it to outpace its top competitor. While that happened, the token’s price action turned bearish in the last 24 hours, which looked concerning.

Therefore, AMBCrypto delved deeper into Arbitrum’s metrics to better understand its state. 

Arbiturn has an edge over Optimism

Nansen posted a tweet on 16th February highlighting several interesting facts related to Arbitrum.

As per the tweet, Arbitrum was exceeding Optimism [OP], one of its top competitors, in daily activity. While ARB’s daily transaction count ranged between 600k and 900k per day, OP’s metric hovered between 300k and 400k, which was nearly half of that of ARB.

This clearly indicated how ARB’s adoption and usage have been on the rise. 

To check whether the L2’s network activity was actually on the rise, AMBCrypto took a look at Artemis’ data. Our analysis found that ARB’s daily active addresses went up once again after dipping on the 9th of February.

It was surprising to see that despite the recent hike in active addresses, the L2’s number of daily transactions dipped sharply over the last 30 days. 

Source: Artemis

Interestingly, while the blockchain’s daily transactions fell, things on the captured value front looked optimistic. Both the L2’s fees and revenue gained upward momentum in the recent past, which was good news for the L2’s overall health. 

ARB is undervalued

Apart from network activity, Nansen’s tweet also mentioned that ARB was undervalued. As per the tweet, fundamentally, Arbitrum is valued at ~2x lower P/S (fully diluted market cap/annualized fees) and P/F (fully diluted market cap/annualized revenues) compared to Optimism.

This hinted that the token might be slightly undervalued.

Therefore, to check whether investors should expect a price uptrend, AMBCrypto took a look at ARB’s daily chart. We found that its Chaikin Money Flow (CMF) registered a slight uptick, which was a bullish signal. However, the rest of the indicators were bearish. 

Read Arbitrum’s [ARB] Price Prediction 2024-25

For example, the MACD displayed the possibility of a bearish crossover. Its Relative Strength Index (RSI) also registered a downtick, indicating a possible price drop.

In fact, as per CoinMarketCap, ARB was already down by over 4% in the last 24 hours. At press time, it was trading at $1.99 with a market capitalization of over $2.5 billion.

Source: TradingView