The value of Arbitrum, the native currency of Ethereum’s layer-2 solution Arbitrum, has experienced a significant decline of 68% since its peak in January 2024.
However, encouraging on-chain advancements suggest that Arbitrum now holds the highest amount of total value locked (TVL) and is filled with significant potential. Around 48% of Ethereum bridging assets are sent via Arbitrum, demonstrating its technological proficiency in resolving the scalability issues that affect the mainnet.
Arbitrum demonstrates superiority in various key performance indicators (KPIs), with Aave, a platform for lending and borrowing, being the primary driver of on-chain asset flow.
Furthermore, it boasts the highest level of activity across networks, with a greater number of daily active addresses than even the mainnet. Arbitrum stands out among other layer-2 solutions by having the highest number of distinct token holders, which suggests a high level of user involvement.
Although the on-chain figures are good, it is uncertain when ARB will experience a recovery. The token had a significant decline of 68% within a span of seven months, primarily due to substantial selling activity, and is currently a mere semblance of its previous state.
