Arbitrum (ARB) Token: A Loss-Making Deal for Investors

The L2 ecosystem of the Ethereum blockchain is growing every day. However, Arbitrum, which had garnered hype, has not been able to sustain it.

Despite the growth of the Ethereum blockchain's L2 ecosystem, Arbitrum, which initially generated substantial buzz, has not been able to maintain the momentum. Among Ethereum's layer 2 solutions, Arbitrum has emerged as the least performing L2.

Highlighting Arbitrum's poor performance, Messari's data reveals that the token launch has proven to be a loss-making deal for investors. Ever since the token was launched in January 2023, it has seen a continuous decline. Only three months, from October 23 to January 24, saw a slight rise in the ARB token. For the rest of the period, the ARB token has brought nothing but disappointment to its investors.

Delving deeper into the worrying data, IntoTheBlock shows that a mere 0.02% of holders are in profit, while 3% are breaking even, and a vast majority of 97% are incurring losses. The burden of these losses is being carried by over 1.15 million addresses.

Moreover, the statistics indicate that only 29% of holders have kept ARB for over a year, 60% have held it for over a month, and 11% have owned it for less than a month. Messari's data corroborates the finding that 97% of holders are experiencing losses.

While Ethereum's L2 ecosystem has had better days compared to Arbitrum, it has hardly been rosy. The total volume of Arbitrum is also decreasing critically.

When the token was launched in 2023, there was a high level of activity surrounding Arbitrum. Several DApps were launched on Arbitrum, and the airdrop also attracted investors' attention. In January 2024, Arbitrum reached its all-time high of $2.39. Since then, the ARB token has fallen by almost 76%.

Examining Glassnode's data, it becomes evident that there has been an overall decline in ARB token trading volume in the past 24 hours.

The most significant decline was observed in the ARB/USDC pair on Bybit, which fell by 75.49%. However, there has also been an increase in OI volume. Observing this, it appears that traders are optimistic about the price of ARB increasing.

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