Token

Arbitrum

LayerZero

Impact

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/arbitrums-arb-token-plummets" data-wpel-link="internal" rel="noopener noreferrer nofollow">Arbitrum’s ARB Token Plummets</a><br></p>
<p style="text-align: justify">Arbitrum’s native <a href="https://en.bitcoinhaber.net/pepe-experiences-significant-price-drop" data-wpel-link="internal" rel="noopener noreferrer nofollow">token</a>, ARB, has experienced a significant drop in recent weeks. On July 5, ARB reached its lowest price to date at $0.57. Despite a subsequent 22% increase, the decrease in user demand for the Layer-2 network threatens to nullify these gains.</p>
<h2 id="what-is-causing-the-decline">What Is Causing the Decline?</h2>
<p style="text-align: justify">On-chain <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data reveals</a> a sharp decline in user demand for Arbitrum since June 21, with the daily number of active addresses falling by over 46%. This reduction in unique active addresses has resulted in a similar decline in daily transactions, which have dropped by 34% after reaching a peak of 3.5 million earlier this year.</p>
<p style="text-align: justify">Additionally, Arbitrum’s network fees and the associated revenue have plummeted to their lowest levels in months. The total network fees had surged to a record $3.4 million on June 20, driven by the LayerZero airdrop event. However, following the event’s conclusion, network fees fell by 98% as users left the platform.</p>
<h2 id="could-whale-activity-impact-arb-s-future">Could Whale Activity Impact ARB’s Future?</h2>
<p style="text-align: justify">Santiment’s Chief Analyst Brian Quinliven has emphasized that the lack of whale activity, which parallels trends seen in optimism, indicates a potential for future volatility. According to Quinliven, the gradual decrease in large transactions might suggest that whales are waiting for more market movement to make substantial <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investments</a>.</p>
<h2 id="key-insights-for-investors">Key Insights for Investors</h2>
<ul>
 <li>The daily number of active addresses on Arbitrum has dropped by over 46% since June 21.</li>
 <li>Daily transactions on the Layer-2 network have decreased by 34% from their peak.</li>
 <li>Arbitrum’s network fees plummeted by 98% following the LayerZero airdrop event.</li>
 <li>Whale activity is currently low but may increase with higher market volatility.</li>
</ul>
<h2 id="potential-recovery-or-further-decline">Potential Recovery or Further Decline?</h2>
<p style="text-align: justify">ARB’s price showed a decline last week, but the Chaikin Money Flow (CMF) indicates an upward trend. This suggests that selling pressure may be waning, potentially leading to a price recovery. If this trend continues, ARB could rise to $0.72. However, if the downtrend persists, the token’s price might drop to $0.66.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/arbitrums-arb-token-plummets" data-wpel-link="internal" rel="noopener noreferrer nofollow">Arbitrum’s ARB Token Plummets</a></h5>

Arbitrum’s ARB Token Plummets

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