The Arbitrum protocol, a layer-two scaling solution for Ethereum, has seen a strong uptrend in recent weeks, with the price of its native token ARB rising 44% compared to a week ago. This price rally was likely sparked by a large-scale buying spree by whales, who show confidence in the asset’s potential growth. While the project was struck by fear, uncertainty, and doubt (FUD) a few weeks ago, it has since seen immense success.

Digging deeper into the why behind the surge, data provided by blockchain intelligence website Lookonchain reveals that in the past 7 days, nine whales have purchased 12.4 million ARB tokens worth $21 million. Furthermore, eleven additional whales are still hodling significant amounts of the asset and only three have sold off 22.8 million ARB tokens worth $38 million. All of these trends point to the idea that whales have strong faith in the project’s future.

Arbitrum was designed to reduce congestion on the Ethereum network and provide faster, cheaper transactions. This has sparked great enthusiasm amongst the Ethereum community, who view the layer-two scaling technology as a pivotal tool in their effort to ramp up the capabilities of decentralized applications (dApps) and non-fungible tokens (NFTs).

The market’s bullish sentiment is reflected in the token’s market cap, which has increased 38% and caused ARB to jump up nine spots in terms of global cryptocurrency rankings. As of writing, the coin is trading at $1.72 with a market cap of $2.2 billion.

When taken together, these factors indicate the strong faith whales have in Arbitrum’s potential for revolutionizing the Ethereum network. Indeed, the surge in trading volume and constant inflows of smart investments may suggest there is significant upside potential for investors who enter at today’s rates. Nevertheless, as with any emerging asset, investors should conduct rigorous research before taking any action.



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