The price trend of ARB is showing similarities with the price movement after the launch of MATIC. MATIC rose by 1,350% after a brutal sell-off in its early days of trading. After reaching a record high of $1.60 on March 23, the price of Arbitrum (ARB) dropped by almost 20%. However, the Ethereum layer-2 token appears ready to continue its upward trend in the coming weeks.
Clues for a bull market for the Arbitrum token can be followed until the launch of Ethereum L2 competitor Polygon. For example, a layer-1 blockchain like Solana (SOL) rallied by 50,000% before a similar price pump, correction, and consolidation phase before its exchange launch in April 2020.
From a fundamental perspective, Arbitrum has emerged as a strong competitor in the Ethereum L2 space in recent months and is used by many leading DeFi protocols such as GMX, Uniswap, Sushi, and Aave. As of March 29, the total value locked (TVL) in Arbitrum pools had risen from around $981 million three months ago to $2.2 billion, according to data source Defi Llama.
According to independent market analyst Mac, Arbitrum’s strong fundamentals could limit the downside potential of ARB and encourage traders to accumulate the token again in the coming weeks. This could lead to a price increase of up to $2 in April 2023, as shown in the article.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
