The Arbitrum ($ARB) ecosystem, a scaling solution built on Ethereum layer-two (L2) and utilizing optimistic rollup, has garnered significant attention from crypto traders since its hyped airdrop. The Arbitrum ecosystem seamlessly connects with any Ethereum-based decentralized applications (Dapps) thanks to the support of an unmodified Ethereum Virtual Machine (EVM).
Consequently, Offchain Labs, the developers behind Arbitrum, announced a shift to a decentralized autonomous organization (DAO) structure – the Arbitrum DAO – to enhance the utility of the $ARB token.
Arbitrum attracts Ethereum whales
The launch hype has resulted in many Ethereum whales proliferating the Arbitrum ($ARB) ecosystem. This is evidenced by the high trading volume of approximately $836 million and a market capitalization of about $1.6 billion. Additionally, market intelligence platform Santiment noted that Stargate’s network growth on Arbitrum managed to hit an all-time high in the past 24 hours.
Arbitrum Has A Bleak Future Ahead, Claim Analysts
Despite the immense hype surrounding $ARB, not all crypto analysts are convinced that the Arbitrum ecosystem will become a trillion-dollar company. $ARB has a circulating supply of 1,275,000,000 tokens and a total supply of 10 billion. Trading around $1.25 on Wednesday, the ARB market has a valuation of approximately $12.5 billion.
InvestAnswers analyst warns $ARB investors
In one of his latest YouTube videos, the anonymous host of InvestAnswers cautioned ARB investors against hoping for a $100 per token.
“If that were to happen, Arbitrum would have a fully diluted market cap of $1.3 trillion. It’s never going to be worth that, okay? Just put things in perspective. Be careful what you read and do your numbers on the back of a napkin, don’t just say, ‘Oh, I can buy something for a dollar and sell it for $100.’ No, it’s not going to happen,” the analyst noted.
Source: https://coinpedia.org/altcoin/arbitrum-price-prediction-heres-why-arb-price-might-not-rise-above-100/