Arbitrum (ARB) Price Gaining Momentum as Network Activity Increases

Arbitrum (ARB) price is attempting to break out of the consolidation phase in the $1.10 to $1.15 range. On-chain analysis can provide insights into how the increasing network activity on the Arbitrum network can trigger another price surge in the coming days.

Popular altcoin Arbitrum has emerged as one of the top Layer 2 scaling solutions with the best performance so far in 2023. The increasing adoption rate, as the cryptocurrency markets intensify, is said to be able to drive the ARB price to a new yearly high. Arbitrum, along with Optimism (OP) and Base, is one of the leading Layer 2 scaling solutions that have seen significant network usage and attracted investor interest this year. Looking closer at on-chain data trends, it can be said that Arbitrum is approaching a turning point in network adoption.

According to IntoTheBlock, the number of addresses funded by ARB surpassed 14,690 on November 8. This number could mean that 55% of the total registered addresses on the Arbitrum network are now funded. An increase in the metric of funded addresses, also known as non-zero balance addresses, can indicate that the blockchain network is being increasingly adopted and expanding.

If funded addresses continue to grow, the increasing demand can push the Arbitrum price towards $1.50 as the cryptocurrency market progresses. Arbitrum, confirming the increasing network demand once again, has experienced a significant increase in the number of new users this month. According to IntoTheBlock, the number of new addresses registered on the Arbitrum network reached a 50-day high with 218 new addresses on November 4. It also reached a monthly peak of 349 unique wallets, which are the total active addresses. The new addresses metric measures the total number of new wallets created on a specific day in a blockchain network.