CMC News

Arbitrum Surpasses $20B as Offchain Labs Adds ARB

Offchain Labs purchased additional $ARB tokens under an approved buying plan while Arbitrum achieved $20 billion in total value secured across its network.

The development company behind #Arbitrum said Wednesday it remains committed to growing the ecosystem and has increased direct exposure to the governance token. Offchain Labs stated the purchase reflects its intention to continue investing in Arbitrum's development across all areas.

The move signals long-term conviction at a time when #governance token prices face sustained pressure and layer-2 competition intensifies. $ARB functions primarily as a governance asset, granting holders voting rights over proposals related to network upgrades, funding initiatives, and ecosystem strategy. All revenue flows on-chain to a treasury wallet controlled by token holders.

Arbitrum processes transactions off-chain through optimistic rollups before settling them on #Ethereum. The technique bundles transactions and assumes validity unless challenged, allowing users to benefit from Ethereum's security while reducing costs and improving transaction speed.

The network has processed over 2.1 billion lifetime transactions on Arbitrum One, its primary Ethereum layer-2 rollup, where most user activity and #DeFi applications are concentrated. Arbitrum consistently ranks as the largest Ethereum layer-2 by market share.

Rival networks including Optimism ($OP) and Base compete for portions of Ethereum's roughly $68 billion DeFi market despite taking divergent approaches. Base does not have a native token, though ongoing market speculation suggests one could eventually be introduced.

Offchain Labs' renewed commitment comes amid broader concerns that core contributors and early stakeholders across the #cryptocurrency industry may be reducing exposure to governance tokens. $ARB's price has dropped 77% this year as sentiment across the sector weakened.