Arbitrum token’s highly anticipated launch took place today, and it seems the trading frenzy has lived up to the hype. In a whirlwind day of highs, lows, and everything in between, the nascent token’s massive volatility left investors on the edge of their seats, anxiously watching the charts and speculating on the future of this promising new asset.
Arbitrum Transaction Activity Outpaces Ethereum
Arbitrum, a scaling solution built on Ethereum’s layer 2 technology, has experienced increased activity leading up to the ongoing airdrop of its native token, ARB, scheduled for today.
Arbiscan, a data source, reported that the number of daily transactions on Arbitrum reached a new all-time high of 1,312,052 on Wednesday, surpassing the previous record of 1,103,398 set on February 21. In contrast, the Ethereum mainnet processed approximately 1.08 million transactions.
According to data from @Henrystats’ Dune Analytics-based Arbitrum dashboard, the number of users on the leading scaling project has surpassed 3 million, with an increase of over 400,000 new users in just two weeks. This represents a growth rate of more than 50% since the announcement of the token airdrop a week ago.
From the very beginning, Arbitrum’s live trading saw extreme price fluctuations. Investors who were quick to buy found themselves elated and despondent within minutes as the token’s value skyrocketed, only to plummet and rebound quickly.
Throughout the day, the token’s price continued to oscillate wildly, leaving many investors both exhilarated and nervous. Trading volume surged, exchanges experienced technical difficulties, and social media platforms were abuzz with speculation and discussion.
What Is the Potential of ARB Token?
Arbitrum’s landing page crashed as soon as it launched its ARB token, likely due to the overwhelming user traffic. However, the website is also the primary means for eligible users to claim their airdropped ARB tokens, and the 429 error suggests that the site cannot handle the volume of requests.
Additionally, Arbiscan, which provides data on Arbitrum’s network, is also currently down and displaying an “unavailable” message.
According to CoinMarketCap, the ARB token started trading at $11.14. It is worth mentioning that following the airdrop, ARB prices on different exchanges showed significant variations, with prices surging as high as $14 on ByBit. ARB token is currently down by nearly 90% as traders liquidated their holdings at a high price, and the token is now trading at $1.14.
Like any new token, the ARB token will likely undergo volatility in the next few days. It is expected ARB token will decline more as the selling pressure is yet to reach the final level. Hence, it is advised to stay cautious amid the volatile trading session.
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