Arbitrum’s Token Demonstrates Plenty Of Potential As It Stands At $1.99B The Day Of Its Launch

March 23, 2023

The long-awaited Arbitrum token (ARB) finally launched on Thursday, March 23. 

  • Over 625,143 wallets received the airdrop and it was trading at $3.99 on Uniswap 
  • Arbitrum, which started in 2021, is the largest layer 2 blockchain on Ethereum, achieving scalability by using a technique called transaction rollups, which sends batches of transactions to the Ethereum mainnet.
  • ARB prices across all exchanges varied following the airdrop as prices reached as high as $14 on Bybit.

Let’s do a bit of analysis. Here’s an image of ARB’s total value locked (TVL) with data from DeFil Llama.

You’ll see that it stands at $1.99b, which is about double Optimism’s TVL. ARB’s market cap is also twice that of OP’s, so that means the market is rationally pricing these L2 coins.

But the story is different from MATIC. ARB has more TVL than MATIC, but less than 1/10th the market cap. The reason is that MATIC has a much larger ecosystem.

A growth story follows. If ARB’s market cap matched MATIC it would be 20B (= 11x return). Since it already has more TVL, that’s not an impossible outcome. Also, if Optimism’s recent activity is any indication then it is clear that ARB is likely to do extremely well.

If you found this helpful, Subscribe to The Art of the Bubble’s free newsletter.

Join us on Discord for live chat and daily updates. Find us on Twitter too.

You found this content helpful ?

  1. 1
    Join our free weekly "Bubble Bulletin" for more
  2. 2
    Join us on Discord for live chat and daily updates
  3. 3
    Follow us on Twitter
  4. 4
    Share this content using the buttons below :

Disclaimer

This piece of content is provided for educational and entertainment purposes only. Robin Technologies and Analytics LLC is the firm that distributes 1.2 Labs products. The firm does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Robin Technologies and Analytics LLC registered as an investment adviser or broker-dealer in any jurisdiction.

You should expect no financial returns one way or another based on statements contained herein. These points hold equally for any statements that could be attributed to The Art of The Bubble or any related business entities or personnel operating in association with Robin Technologies and Analytics LLC.

If you decide to buy or invest in anything, then your returns and potential losses are your own. No statements about taxation are taxable advice and you are encouraged to consult your own tax professional. You are also encouraged to do your own due diligence before investing in anything.

RELATED POSTS:

November 30, 2022

April 16, 2024

June 27, 2022

July 20, 2022

July 12, 2023

August 15, 2022

February 10, 2021

September 11, 2022

April 5, 2023

LATEST POSTS:

May 23, 2024

May 22, 2024

May 21, 2024

May 20, 2024

May 16, 2024

May 15, 2024

May 14, 2024

May 9, 2024

May 8, 2024

What do do now?

Join the free 1.2 Labs "Bubble Trading" Bulletin for new trading strategies, macro & sentiment analysis and occasional free airdrops