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Arbitrum (ARB) had a rough couple of weeks following its community airdrop that saw around 1 billion tokens airdropped to active participants on the layer 2 blockchain. However, there is already a turn in the tide as the crypto market has recovered and ARB has emerged as one of the strongest performers in the space.
Arbitrum Becomes A Force To Be Reckoned With
Unlike a good number of Layer 2 blockchains which have seen their volumes decline after being in the spotlight for a while, Arbitrum has not let up. In fact, the blockchain has begun to rival Ethereum, the Layer 1 blockchain it is built on top of, in terms of volume.
On Monday, data from DeFiLlama revealed that Arbitrum actually saw more volume than Ethereum in a 24-hour period. Now, this didn’t last for long as Ethereum would retake its position once more. But it helped to solidify Arbitrum’s place as a force to be reckoned with in the space.
Likewise, Arbitrum has also seen the number of accounts on the network reach a new milestone. As of Monday, the total number of ARB wallet addresses on the L2 crossed 5 million. Interestingly, the large majority of these addresses are classified as active addresses.
Active users cross 5 million | Source: Dune Analytics
This Dune Analytics dashboard shows that there are 4.237 million active addresses on the network which have carried out almost 200 million transactions. Furthermore, the number of contracts that have been created on the L2 has crossed 2 million. These metrics make Arbitrum the most active of all of the L2s. It also sees more volume than the BSC Chain, which is the second-largest L1 in the space.
ARB Makes Its Way Above $1.7 Resistance
In accordance with its rising usage and volume, the ARB price has enjoyed success in the market recently. After trending between $1.1 and $1.3 for the better part of the prior week, the digital asset saw a surge in momentum which pushed it above the $1.7 resistance level.
ARB’s trading volume for the last 24 hours grew by 27% to $1.3 billion. This growth indicates increased interest in the digital asset, which would explain why it is surging in the last few days. Its price also briefly hit $1.8 before correcting back downwards as bears tried to fight back.
Nevertheless, the Arbitrum native token remains on a bullish trend and is still what many considered undervalued. The reason for this is the market cap of MATIC, another L2 token, is sitting at over $10 billion even though Arbtirum is seeing more volume compared to Polygon. Given this, the interest in the L2 could push it further, and at the same market cap as MATIC, ARB would be looking at a fair market price of $9 per token.
ARB is currently leading the gainers on Coinmarketcap after rising 8.72% in 24 hours. It is trading at a price of $1.77 and its market cap has grown above $2.2 billion.