Arbitrum Is Trending On Social Media, Time For ARB To Rip Higher?
05 Januar 2024 - 2:30AM
NEWSBTC
There is an upswing in social media mention of ARB, the native
token of Arbitrum, a layer-2 scaling solution for Ethereum,
suggesting growing interest and potential for price gains.
According to AlphaScan data on January 4, ARB had the “best
sentiment” in the last 24 hours, with more than 40% of all weekly
mentions occurring within this timeframe. Notably, ARB was the most
mentioned token, right behind Bitcoin. This surge in positive
sentiment shows in the weekly timeframe, where over 30% of all
monthly mentions occurred in the last week of December. ARB Is
Trending As Prices Rise To 2024 Highs Social media mentions can be
a good metric for tracking sentiment. As such, with ARB trending,
only trailing Bitcoin, it could show that the crypto community is
taking note of the project and tracking its progress. Since there
was no hack or steep losses on January 3, the ARB social media
count spike is a net bullish for the project. Related Reading:
Crypto Analyst Predicts Bullish Hammer For XRP In Upcoming Move
Interestingly, ARB is trending across social media platforms when
token prices are at an all-time high and decentralized finance
(DeFi) activity is recovering. From the daily chart, ARB is
changing hands at around $2, the highest price point for the token,
according to Binance data. In 2023 alone, ARB surged roughly
300% from March 2023 lows, peaking in late December. The uptrend
remains, and bulls are pressing on, absorbing any attempts for
lower lows. Arbitrum plays a key role in addressing the scaling
limitations of Ethereum. The layer-2 roll-up option re-routs
transactions from the mainnet, relieving the base layer. This helps
keep gas fees low, enhancing the overall user experience.
Based on L2Beat data on January 4, Arbitrum is the largest
layer-2 scaling solution with a total value locked (TVL) of over
$9.8 billion. Of note, Arbitrum has implemented a permission
fraud-proof system that overly enhances transaction transparency,
allowing for the effective monitoring of its sequencer’s
activities. Arbitrum Orbit Supports Custom Tokens For Gas Payment
The uptick in social media activity also follows the recent
enhancements to Arbitrum Orbit. Launched in Q1 2023, the
platform allows developers to build layer-3 protocols on
Arbitrum. Protocol developers have now added support for
custom gas tokens. This feature relieves Orbit chain deployers from
using ETH to pay gas fees and, instead, opt to select ERC-20
tokens, including ARB. Related Reading: Bitcoin Price
Reclaims $43,000 On Rumor Of ETF Approval Tomorrow With Arbitrum
Orbit evolving, developers and projects launching on layer-3
solutions will have more flexibility. This move will also likely
enhance the utility of their respective tokens, boosting demand and
even prices since they are not tied to using ETH or, expressly, ARB
to pay gas fees. Feature image from Canva, chart from
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