- The Arbitrum protocol and its native token ARB, which dominated the first half of 2023, experienced a significant slowdown in growth.
- According to the data, the number of OP holders has increased significantly, but the same cannot be said for ARB. This difference may cause ARB to face some challenges in the future.
- When we take a closer look at the network growth of ARB, we can see a decline last week. This decline may indicate a potential decrease in the number of new addresses showing interest in the token.
Arbitrum, which dominated the first 6 months of 2023, is facing challenges recently and the situation is deteriorating for ARB.
Arbitrum Faces Challenges
The Arbitrum protocol and its native token ARB, which dominated the first half of 2023, experienced a significant slowdown in growth. This change in trend can be attributed to a combination of factors such as the entry of new players into the market and the revival of older competitors.
According to data from Token Terminal, the number of OP holders has increased significantly, but the same cannot be said for ARB. This difference may cause ARB to face some challenges in the future. The relatively stagnant base of ARB token holders may affect the overall value of the token and hinder the expansion of its ecosystem.
When we take a closer look at the network growth of ARB, we can see a decline last week. This decline may indicate a potential decrease in the number of new addresses showing interest in the token, which may suggest a decreasing enthusiasm among investors and users.
Furthermore, the decreasing velocity of the ARB token indicates a decrease in trading frequency. Such a trend can have consequences on the market dynamics of ARB and even affect its attractiveness for traders and investors.
When we focus on the protocol level, recent data reveals a concerning trend. The revenue generated by the Arbitrum protocol has experienced a sharp decline of 22.7%. This revenue decline was accompanied by only a small decrease of 1.2% in overall activity within the protocol.
These figures raise questions about the overall health and sustainability of the Arbitrum protocol in the face of growing challenges.
NFT Move on Arbitrum
Despite these challenges, there is a promising light on the horizon. The Arbitrum governance framework has witnessed the emergence of proposals that could bring new energy to the platform, particularly in the NFT space.
The Rari Foundation, focusing on the NFT ecosystem, stood out with a proposal aiming to inject fresh energy into the ecosystem. This proposal included integrating Arbitrum One with the open-source Rarible Protocol. This integration could enhance interaction and activity within the Arbitrum ecosystem by providing powerful tools for NFT applications.
