The Arbitrum token (ARB) recently reached a high of $1.56 per data from coinmarketcap. Recent on-chain activity indicates that whales have been accumulating ARB. One Twitter user noted that a whale had acquired 1.48 million ARB tokens worth $2.24 million today. The ARB token is now 30% up in the past week. This huge price surge comes after the Ethereum Shapella upgrade and the governance clash in the ecosystem.
A few weeks ago, Arbitrum founders came under fire for neglecting a voted proposal from users. The Foundation encouraged its community members to vote for or against using a portion of ARB tokens. Interestingly, Arbitrum Foundation neglected the votes, proceeding to sell $10 million worth of ARB tokens before the voting results were out. The ARB tokens were reportedly sold for USDC and DAI and would be used for operational costs.
Following this rash decision, Arbitrum Foundation got blasted by its community members. The decision also effectively affected the price of ARB, as the token fell from $1.05 to $0.76 within two days. Notably, after the token sale saga, the Arbitrum team apologized to its community members. Going forward, the protocol leaders vowed to submit a new proposal more transparently. The team intends to organize a new vote and refrain from selling tokens in the short term.
The Prompt Apology Pays Off
Since the Arbitrum Foundation promised to make things right, the ARB token has regained some balance. In the past week, ARB traded above the $1 mark. However, in the last few hours, Arbitrum’s token has seemingly set its feet on the gas. ARB soared from around $1.13 to a high of $1.37 yesterday. While the move on Thursday fetched investors a 20% gain, the Ethereum scaling token was not done yet.
ARB further soared by another 20%, rising from the $1.3 level to as high as $1.56. Some price analysts have linked the recent price surge with the Ethereum Shapella upgrade. Arbitrum’s reputation as an Ethereum scaling solution has made the project outstanding in the crypto ecosystem.
About Arbitrum
Arbitrum implements a unique optimistic roll-up solution that differs from other protocols that use rollups. The protocol stands out in compatibility, scalability, flexibility, and decentralization. Interestingly, Arbitrum supports unmodified EVM contracts and transactions, meaning existing Ethereum DApps can run on Arbitrum without requiring code changes. Additionally, developers can deploy programs written in popular programming languages like Rust, C++, and more using its upcoming EVM+ equivalence feature, Stylus.
Further, the blockchain protocol can process thousands of transactions per second with low fees and fast finality. Notable protocols on the Arbitrum network include GMX, Radiant Capital, Vela Exchange, TridentDAO, Jones DAO, and more. The growth of the Arbitrum ecosystem is evident from its TVL metric, which currently stands at approximately $1.85 billion. This places Arbitrum as the highest TVL among all other Layer 2 ecosystems.
