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Arbitrum (ARB/USD) new crypto token is surging a day after the airdrop. According to CoinMarketCap, ARB price was trading at $1.50, giving it a market cap of over $1.9 billion. This makes it the 33rd biggest cryptocurrency in the world. This makes it much bigger than Optimism’s OP but smaller than Polygon’s MATIC, which is valued at over $10 billion.
Why is Arbitrum soaring?
On Tuesday, I wrote an articlethat predicted that Arbitrum’s new token would surge on its debut. The main reason for this performance is that Arbitrum has become the fastest-growing blockchain project in the world.
Public data shows that Arbitrum is growing in all industries, including DeFi, NFTs, and gaming. For example, in the DeFi industry, it has been embraced by leading blockchains like GMX, AAVE, Uniswap, and Radiant among others.
Data shows that Arbitrum has over 252 DeFi dApps in its ecosystem compared to Polygon’s 392. However, in terms of the total value locked (TVL) has $2.12 billion. Polygon has a TVL of over $1 billion while Optimism has $978 million.
Therefore, ARB token is soaring as investors believe that it could be the next big thing in the blockchain industry.
The Pyth network is excited to release its ARB/USD price feed 🔮$ARB is the newly launched governance token of leading Ethereum Layer 2 @arbitrum 👨🚀
— Pyth Network 🔮 (@PythNetwork) March 23, 2023
Any #PoweredByPyth app can now tap into our ARB/USD feed, as well as Pyth’s 200+ on-demand price feeds! pic.twitter.com/Xb3r0J1DMA
Further, Arbitrum is being used in other pivotal sectors as well. For example, in the NFT industry, it is used by leading players like OpenSea, which handle transactions worth millions of dollars every day.
The other reason why ARB is jumping is the timing of the airdrop. It came in a time when cryptocurrencies are doing well, with Bitcoin trading at $28,000. This is a common phenomenon even in the stock market, where new listings do well when stocks are rising.
Looking forward, the other catalyst for Arbitrum will be the new listings by popular exchanges. It has already been listed by companies like Binance, Gate, and Bybit.
ARB crypto price forecast
It is too early to predict where Arbitrum’s token will trade at in the long term. Like other altcoins, the token’s price will depend on the vibrance of the ecosystem and the overall performance of Bitcoin. This rally could see it jump to the next psychological level of $2.
In the near term, however, we can’t rule out a situation where Arbitrum’s token pulls back as early buyers start harvesting their profits. If this happens, it could retreat to about $1.4 or lower.