Categories: Crypto News
| On
2023-10-27 9:31 AM

Arbitrum’s Orbit Launch Shines, But Token Price Remains Sluggish

  • Arbitrum's Orbit, a Layer-3 system, is now mainnet ready, aiming to decentralize the network and attract developers to build on top of existing chains.
  • Despite positive developments in the Arbitrum ecosystem, the ARB token's price has dipped by 2% recently, showing a disconnect between project advancements and token valuation.
  • On-chain data reveals increasing activity on the Arbitrum chain, suggesting a strong trader engagement and a potential future price recovery for the ARB token.
By Nonhlanhla

In a notable development that’s capturing the attention of South African blockchain enthusiasts, the Arbitrum network’s innovative Layer-3 system, Orbit, has been declared mainnet ready. This ambitious move by the Arbitrum Foundation aims to foster decentralization across the network. The launch invites local and global developers to harness the capabilities of Arbitrum One, Nova, Goerli, and Sepolia, to construct their bespoke Layer-2 and Layer-3 chains.

Interestingly, in the midst of these promising advancements, the ARB token witnessed a 2% dip within the last 24 hours. Despite the momentum gained from the positive strides in the ecosystem, the ARB’s price recovery remains somewhat muted.

Orbit’s Decentralization Promise in the Heart of Arbitrum

The introduction of the Arbitrum Foundation’s Orbit in its Layer-3 application system could be a potential game-changer. With the slow evolution of projects grounded in Arbitrum, Orbit’s unveiling might just be the catalyst needed for developers. Orbit’s foundation is deeply rooted in the essential modules of the Ethereum network’s consensus and security layer. This ensures that Layer-3 applications maintain high compatibility with the Ethereum Virtual Machine (EVM) while permitting projects to personalise their gas tokens, amplifying the decentralisation of Arbitrum and its associated ventures.

Orbit’s flexibility is also drawing attention. Projects delving into it can seamlessly integrate third-party decentralized apps such as Celestia. This becomes especially crucial for developers eyeing independent application chains, including those working on trading platforms for derivatives and gaming applications. Arbitrum’s Orbit could be their go-to solution.

A Closer Look at ARB’s Performance Metrics

Despite the enthusiasm around Arbitrum’s advancements, its governance token, ARB, faces challenges in recuperating its position. Comprehensive on-chain indicators, such as daily active addresses and trading volume, underscore an amplified activity on Arbitrum’s chain. However, the token’s price progression remains sluggish.

Drawing insights from the esteemed crypto intelligence platform, Santiment, October has seen a steady surge in ARB’s daily active addresses and trade volume. Astonishingly, between September 27 and October 26, ARB’s trading volume experienced a near six-fold surge, escalating from 76.66 million to a remarkable 458.82 million.

The consistent performance above the 11,250 level for daily active addresses denotes a robust trader engagement. Furthermore, the weighted sentiment, a metric amalgamating positive and negative trader sentiments and scaled by the social volume, presents a favourable disposition towards ARB. Current data from Santiment earmarks the weighted sentiment for ARB at 1.216 – a reassuring indication, suggesting a potential price recovery for the token in the foreseeable future.

ARB’s Current Market Standing

Presently, the ARB token is trading at $0.9211 (R17.43) on Binance. Despite garnering a respectable 19.62% gain over the last week, it recorded close to a 2% loss today. Renowned crypto analyst from X, Altcoin Sherpa, after scrutinising the Arbitrum price trajectory, inferred that should the ARB price face a downward shift, a sturdy support might emerge at $0.7825 (R14.80), aligning with the 78.6% Fibonacci Retracement level.

As South African crypto aficionados and traders keenly observe these developments, the broader sentiment remains optimistic, waiting to see if Arbitrum’s technical advancements will eventually bolster its market performance.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Arbitrum