Offchain Labs developed Arbitrum which was officially launched in 2023 to help Ethereum out of its congestion and scaling troubles. The inception of the project will lead to enhanced satisfaction since it will offer upgraded effectiveness and decreased transaction costs on the Ethereum network.
Arbitrum helps users transact on Ethereum with reduced gas fees, and the previously developed Dencun upgrade reduced the fees on this network.
In terms of security, Arbitrum relies on the Proof-of-Stake (PoS) consensus mechanism used by the second-largest blockchain. ARB is the native token of the Arbitrum ecosystem. Upon its launch in March 2023, the Arbitrum Foundation distributed 12.75% of its maximum supply to early network users.
ARB Current Market Status
At the time of writing ARB is changing hands at $0.8 with a monthly low of 32.44% a market cap of $2.5 billion, and the 24-hour trading volume sits at $172 million. The 24-hour trading volume witnessed a decrease of 3.72%, whereas the market cap is down by 3.46% as per CoinMarketCap data.
The toke made its all-time high at the start of March by touching a milestone of $2.2, and after that, the coin experienced a continuous drop in its price.
Arbitrum Price Analysis
Is it a good time to buy Arbitrum? After experiencing a series of red candles in the chart, some of the traders expect the token to grow again. Some of them are anticipating it to decline further by analyzing the current market sentiments and selling pressure on the coin.
In the meantime, the RSI indicator reflects a value around 33, indicates a over selling zone of the token. The price of the token may spike if it crosses an immediate resistance of $0.84 and $0.9 to touch the $1 mark.
Considering a daily time frame graph, the 50-day moving average is sloping downward, and it also reflects a weak trend. This indicates a selling pressure and may cost the coin to make further deep corrections.
Is It a Good Time to Invest in Arbitrum?
The continued declining trend and high selling pressure made it unfavorable for investment. The RSI value of 33.6 indicates that the sellers are more active than the buyers.
Recent Developments in ARB
Arbitrum is about to launch a “Timeboost; a new tx ordering policy for Arbitrum chains.”
During this timeboost, users can face delays in their transactions due to high MS. It consists of active bidders to participate in the auction. The candidates for bidding have to deposit funds and the platform will verify it. The bid is for what step to take in the future about ARB tokens, either some of the tokens need to be burned or merged to Ethereum.
The proposal says “We’re proposing a modified transaction ordering policy for the Arbitrum sequencer, adding a “time boost” to the current first-come, first-served policy, where a transaction could pay a priority fee to get a small advantage or “time boost” in the ordering. This shouldn’t affect most users, but can provide a better way to manage “latency racing” behavior.”
The recent development may cause ARB to skyrocket its price as they are trying to revise policies for a better user experience.
Disclaimer: The information provided above is based on the individual analysis of the writer and not be considered as financial advice. Crypto is a high-risk asset and may cause you to lose all your savings.
