Arbitrum’s ARB crypto price rises: prepare for a pullback
Arbitrum (ARB/USD) new crypto token rises one day after airdrop. According to CoinMarketCap, the ARB price traded at $1.50, giving it a market capitalization of over $1.9 billion. This makes it the 33rd largest cryptocurrency in the world. This makes it much larger than Optimism’s OP, but smaller than Polygon’s MATIC, which is valued at over $10 billion.
Why is Arbitrum increasing?
On Tuesday I wrote an article who predicted that Arbitrum’s new token would rise 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 such as 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 total value locked (TVL) it has $2.12 billion. Polygon has a TVL of over $1 billion while Optimism has $978 million.
Therefore, the ARB token is soaring as investors believe that it could be the next big thing in the blockchain industry.
Furthermore, Arbitrum is also used in other central sectors. For example, in the NFT industry, it is used by leading players such as OpenSea, which handles millions of dollars worth of transactions every day.
The other reason why the ARB jumps is the timing of the airdrop. It came at a time when cryptocurrencies are doing well, with Bitcoin trading at $28,000. This is a common phenomenon in the stock market as well, where new listings do well when stocks rise.
Looking ahead, the other catalyst for Arbitrum will be the new listings from popular exchanges. It is already listed by companies such as Binance, Gate and Bybit.
ARB Crypto Price Forecast
It is too early to predict where Arbitrum’s token will trade in the long term. Like other altcoins, the token’s price will depend on the life of the ecosystem and the overall performance of Bitcoin. This rally could see it jump to the next psychological level of $2.
In the short term, however, we cannot rule out a situation where Arbitrum’s token pulls back as early buyers begin to reap the profits. If this happens, it could pull back to around $1.4 or lower.
