The main reason for this is that whales are accumulating ARB. Unlike highly valued ghost chains, Arbitrum already works with hundreds of protocols, and developers are building even more. Whether it’s in DeFi or GameFi, the potential for growth is enormous.
This is why Crypto Whales are Accumulating ARB
Following the announcement of the Arbitrum Airdrop, we’ve witnessed a rise in whale activity, with millions of dollars in purchases. This behavior can be explained by the few catalysts which likely drove ARB price higher lately:
Total Value Locked (TVL) in ARB climbed
The growth of TVL has had a significant impact on the Arbitrum ecosystem.
Source: DeFillama
On the airdrop date, the following amounts were recorded for Arbitrum and its closest peer:
- Optimism (OP): $976M
- Arbitrum (ARB): $2.1B
Since then, Arbitrum’s Total Value Locked (TVL) has increased by 9%, while Optimism’s TVL has decreased by 3%.
On-Chain Development
In the true sense, monitoring on-chain development indicates the amount of value being produced. On average, rbitrum has over 6,000 contracts deployed, while the other prominent L2 Optimism has only around 1,000.
“Smart money” is holding ARB
On-chain data shows that the “smart money” and funds that accumulated ARB after the airdrop still hasn’t sold, which is encouraging. Ethereum addresses of high-volume and profitable traders are tagged here as “smart money.”
Overall, the funding rates are positive, suggesting that futures traders are bullish on ARB, which raises a yellow flag for late buyers:
Daily accumulated users are on the rise
Users who are using arbitrum is growing sustainably in the last months.
Source:
Arbitrum ecosystem growth
Arbitrum has listed several projects in the ARB ecosystem. Counter Fire, an Anime blockchain game, was launched recently.
Source: Twitter
Sharp Labs, a project that builds DeFi protocols, was also recently rolled out.
Source: Twitter
When inactive suddenly awakens and purchases a token, it suggests that they were aware of something beforehand. Today, ARB is experiencing a surge and this can continue for a while. Make sure to look out for these projects on Arbitrum as well as these are the obvious beneficiaries of this shift:
All these projects have benefitted from deeper ARB liquidity.
