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Arbitrum (ARB) crypto price has staged a strong recovery as the crypto bull run continues and it continues gaining market share. The ARB token soared to a high of $1.3600, its highest point since May 6th. It has risen by over 79% from its lowest level this year, giving it a market cap of over $1.6 billion.
Booming DeFi ecosystem
Arbitrum has been one of the biggest winners in the crypto industry in 2023 as demand for its network accelerated. As more developers moved to its network, it passed other layer-2 networks like Polygon and Optimism. It also passed other big names in the blockchain industry like Avalanche and Solana.
Arbitrum has attracted many well-known developers in its ecosystem. According to DeFi Llama, it has grown its Total Value Locked (TVL) to over $2.3 billion. The biggest dApp in its ecosystem is GMX, which has over $551 million in assets. It also collected over $340k in fees on Friday.
The other prominent players in Arbitrum are Uniswap, Aave, Radiant, Balancer, Camelot, Stargate, and Compound. While GMX has more assets in its ecosystem, Arbitrum’s Uniswap version is the fourth-biggest DEX in the world. It handled over $533 million assets in the past 24 hours.
In addition to DeFi, Arbitrum is also gaining traction from developers in industries like gaming, NFTs., and infrastructure. Some of the top games in its ecosystem are Farcana, Starfall, and The Beacon.
Developers love Arbitrum for several factors such as its fast speeds, low transaction costs, and the substantial degree of decentralization. They also love Arbitrum Orbit, its recently launched platform that enables people to launch their chains. These chains settles to Arbitrum or Nova.
The biggest challenge for Arbitrum’s ARB token is the limited number of tokens in circulation. According to CoinGecko, there are now 1.25 billion tokens against the maximum 10 billion. This means that holders can expect more dilution in the coming years.
Arbitrum price forecast
ARB chart by TradingView
The daily chart shows that the ARB token price has been in a strong uptrend in the past few days. It recently flipped the important resistance at $1.2237, its highest swing on November 10th.
Arbitrum price has also risen above the 50-day moving average and the 50% Fibonacci Retracement level. Oscillators like the RSI and the Stochastic Oscillator have pointed upwards. Therefore, the outlook for the Arbitrum price will continue rising as buyers target the key point at $1.50.
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