There has been a noticeable increase in social media mentions of ARB, the native token of Arbitrum, a layer-2 scaling solution for Ethereum. This upsurge in mentions suggests a growing interest in ARB and the potential for price gains.
According to AlphaScan data on January 4, ARB had the “best sentiment” in the last 24 hours, with over 40% of all weekly mentions occurring within this timeframe. Notably, ARB was the second most mentioned token, following Bitcoin. This surge in positive sentiment is reflected in the weekly timeframe, with over 30% of all monthly mentions occurring in the last week of December.
The rise in social media mentions reflects the current price trends, as ARB is trading at around $2, its highest price point yet, according to Binance data. In 2023 alone, ARB surged roughly 300% from March 2023 lows, peaking in late December. The uptrend remains, and bulls are pressing on, absorbing any attempts for lower lows.
Arbitrum’s role in addressing Ethereum’s scaling limitations is crucial, as the layer-2 roll-up option re-routes transactions from the mainnet, relieving the base layer and keeping gas fees low. As of January 4, Arbitrum is the largest layer-2 scaling solution with a total value locked (TVL) of over $9.8 billion, based on data from L2Beat. Additionally, Arbitrum has implemented a permission fraud-proof system that overly enhances transaction transparency and allows for effective monitoring of its sequencer’s activities.
The recent enhancements to Arbitrum Orbit, launched in Q1 2023, also contribute to the uptick in social media activity. Orbit now allows developers to build layer-3 protocols on Arbitrum and has added support for custom gas tokens. This enables developers to use ERC-20 tokens, including ARB, for gas payment, providing more flexibility and potentially boosting demand and prices.
As ARB continues to trend and show positive sentiment, it is important for investors to conduct their own research before making any investment decisions, as investing carries risks. This information is provided for educational purposes only and does not represent the opinions of NewsBTC.
