Arbitrum

Billion

<ul class="list-ic vertical"> 
 <li> 1 <a>Arbitrum lost over 16% in the last two trading days.&nbsp;</a> </li> 
 <li> 2 <a>The governance proposals within Arbitrum’s decentralized autonomous organization (DAO) can be one of the potential reasons for the price decline.&nbsp;</a> </li> 
</ul> 
The cryptocurrency market has an inherent issue of volatility and it’s not a rare case when a crypto asset loses significant value within a short time span. The instance of Arbitrum (ARB) falling up to 15% recently would not be an issue only if the decline did not make the token’s lowest trading point. ARB token’s price fall led the crypto token to attain its lowest price. 
Arbitrum is among the top players across Ethereum-based Layer-2 scaling solutions and ARB is the native governance and utility token. The token lost over 16% of its price in the last two days of trading. Before falling, ARB was trading at around $0.90 
on September 10 while it attained $0.746. The price was the lowest trading price for the cryptocurrency.&nbsp; 
However, by the time of writing, the ARB token gained some value and traded at $0.78.&nbsp; 
The fall in the token’s price is surprising since the other growth metrics show positive numbers. For instance, the total value locked (TVL) of ARB is at $1.6 Billion during a similar time frame.&nbsp; 
<h2 class="wp-block-heading" id="strong-potential-reasons-behind-arbitrum-token-s-price-fall-strong">Potential Reasons Behind Arbitrum Token’s Price Fall</h2> 
A potential area of concern arises from the fact that there have been no reported instances of fraud-proof issuance since the launch of the Arbitrum mainnet in August 2021. However, developers have clarified that this aligns with the intended functioning of the system.&nbsp; 
Validators with malicious intentions face the risk of losing their entire stake, acting as a deterrent. As a result, this data is unlikely to have had a substantial impact on the price over the past week. There are additional factors that could provide insights into the recent price decline, particularly related to governance proposals within Arbitrum’s decentralized autonomous organization (DAO).&nbsp; 
The first proposal, which was posted on September 2, suggests allocating up to 75 million ARB tokens from the project’s treasury to meet “short-term community needs” for active decentralized applications (dApps) in the ecosystem. However, even if this proposal is approved, the allocation represents less than 2% of the DAO treasury holdings, making it unlikely to be the primary cause of the <a href="https://www.thecoinrepublic.com/2023/09/11/arbitrum-price-prediction-arb-price-melts-roughly-10-in-2-days/" rel="noopener noreferrer nofollow">ARB token price</a> correction, regardless of one’s perspective on the proposal. 
It’s interesting to see how different government proposals can generate debate within the crypto community. The PlutusDAO’s proposal to return tokens to ARB holders through a staking mechanism certainly introduces a new dynamic.&nbsp; 
Inflationary approaches like this can be divisive, as some investors may be concerned about the potential impact on token prices, while others may see it as a way to reward and incentivize long-term holders. Ultimately, the outcome of such proposals depends on the consensus reached by the community and the goals of the project.

Arbitrum (ARB) Price At Lowest Level Following 15% Sharp Decline

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Thecoinrepublic.com

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