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Arbitrum, an already recognized blockchain scaling layer for Ethereum, is an innovative solution based on so-called “optimistic rollups”. Thanks to this approach, Arbitrum increases Ethereum’s efficiency, reduces transaction costs and significantly speeds up their execution. The ARB token plays a key role in managing this ecosystem, offering its holders influence on the development and future of the entire project. Below we present a detailed analysis of the project and arguments that may speak for its investment potential.
What is Arbitrum?
Arbitrum is an Ethereum Layer 2 scaling solution built on “optimistic rollups” by Offchain Labs. By moving most of the computation and data storage off the main Ethereum network, Arbitrum minimizes overhead, speeds up transactions, and lowers fees. As a result, it provides higher throughput and lower costs than standard Ethereum transactions, while inheriting its security.
The ARB token serves as the unit of governance within the decentralized Arbitrum DAO, enabling voting on key decisions including network upgrades, fund allocation, and Security Council elections. This makes the ARB a central element of decentralized governance for the entire ecosystem.
Key innovations and development plans
Arbitrum is a particularly interesting project due to its ambitious development plan, which includes:
- orbit – launching your own Layer 3 solution.
- Stylus – enabling developers to build applications in a variety of popular languages, such as Rust and C++, which opens the door to collaboration with a wide range of developers.
- Expanding the set of validators – adding more independent institutional validators.
- Arbitrum One – transfer of the protocol to the second layer, which will significantly speed up the execution of transactions.
This approach allows for increased flexibility, compatibility, and decentralization of the system, making it one of the most popular scaling solutions for Ethereum.
ARB Token - Meaning and Use
The ARB token, launched via an airdrop on March 23, 2023, allows users to participate in the governance of the Arbitrum ecosystem. Token holders can participate in votes on future changes, including:
- chain updates,
- network parameters,
- allocation of grants and awards,
- integration of new functions.
It is worth emphasizing that ARB does not function as a token used for transaction fees (gas fee), like ETH on the Ethereum network. Fees on Arbitrum can be covered by ETH or other ERC-20 tokens supported by Dappy.
Unique design features
- Ethereum Compatibility – Arbitrum supports unmodified EVM contracts and transactions, meaning any Ethereum application can run on Arbitrum without requiring any code modifications.
- High scalability – By using rollups, Arbitrum handles thousands of transactions per second with low fees while maintaining security.
- Flexibility for developers – Arbitrum supports programming in a variety of languages, such as Rust and C++, making it attractive to a wide range of developers.
- Decentralization – The project is not based on a central operator, but on a network of validators staking ARB tokens and earning fees.
Arbitrum Ecosystem and Value Locked (TVL)
Arbitrum has gained recognition in the community for its numerous decentralized applications, tools, and partners. Its ecosystem includes protocols such as GMX, Treasure, Camelot, Radiant Capital, Vela Exchange, and Jones DAO. As evidenced by the value locked (TVL), the ecosystem is growing rapidly, reaching a peak of $2021 billion at the end of 3,2, placing Arbitrum at the forefront of Layer 2 solutions.
Project creators
Arbitrum is backed by Offchain Labs, a company founded by prominent Princeton University researchers Ed Felten, Steven Goldfeder, and Harry Kalodner. Ed Felten is a computer science professor who served in the Obama administration, while Steven Goldfeder and Harry Kalodner have impressive academic backgrounds in cryptography and blockchain. Offchain Labs raised $2021 million in a funding round in 120, raising the company’s valuation to $1,2 billion.
ARB token purchase and quotes
The ARB token can be purchased on leading exchanges such as Binance, Coinbase, KuCoin, Bybit, Kraken, and Bitfinex. It is also available on decentralized exchanges such as Uniswap V3 (Ethereum and Arbitrum) and SushiSwap (Arbitrum). To track the latest ARB prices in real time, it is worth using the CMC app.
Technical data and statistics
| Parameter | Value |
|---|---|
| Ticker | ARB |
| Current price of | $0.5301 |
| Place in the ranking | #39 |
| Marketcap | $ 2.11B |
| Circulating supply | 3.98B ARB |
| Maximum supply | — |
| Total supply | 10B ARB |
| FDV | $ 5.30B |
| Volume (24h) | $ 187.85M |
| Volume/Mkt Cap Ratio | 8.89% |
| Percentage of tokens locked | 31.19% |
| Percentage of tokens unlocked | 35.27% |
| Tokens for investors | 26.38% |
| Tokens for the team, future team, advisors | 40.53% |
NFTs in the Arbitrum Ecosystem
NFTs play a significant role on the Arbitrum platform, as evidenced by the high transaction volume and diversity of NFT collections. The value of sales in the last 24 hours was $54,357.84, an increase of 36,44% compared to the previous day. Notable collections include: NewCryptoSpace, HoneyGenesis, HungryBera, Yeetard NFTs i Nether.
Summary
Arbitrum stands out as an innovative and effective Ethereum scaling solution that offers users speed, low costs, and full decentralization, and thanks to the ARB token, allows holders to have a real impact on the development of the network. The involvement of such an outstanding team of scientists and investors places the project among the most interesting solutions on the market.
