Can ARB Price Meet the 120% Growth Expectations

Several factors support Arbitrum’s potential for sustained bullish momentum and resilience. The ARB token’s impressive 10% surge distinguishes it from the broader crypto market’s 1.7% decline, as reported by the CoinDesk Market Index. However, crypto enthusiasts are predicting a more than 120% surge in the ARB Price.

What is Arbitrum?

The Arbitrum protocol is based on a simple cryptocurrency design that allows parties to implement a smart contract as a Virtual Machine (AVM) that encodes the contract’s rules. VMs are programs that run on the Arbitrum VM Architecture.

Arbitrum can solve Ethereum’s congestion and high fees issues. Transactions processing on Ethereum costs fees to compensate network participants for storing smart contracts on their machines.

Limitations of Ethereum and How Arbitrum Solves it

The transaction fee also increases as the number of users and transactions increases on the network. Additionally, scalability is severely limited because every miner in the Ethereum blockchain must simulate every step of a contract’s execution, which is costly.

The Ethereum blockchain also mandates that every contract’s code and data be made public unless there is a privacy overlay feature with its own costs.

Thanks to the Arbitrum protocol, any single honest manager can force the Virtual Machine (VM) to behave according to the VM’s code. Parties with a stake in the outcome of the VM can choose someone they trust to act as manager on their behalf or directly as managers. In practice, many contracts’ natural set of managers will be limited.

In Arbitrum, managers help to advance the state of VMs at a reduced cost for verifiers. Verifiers keep track of the hash of the VM’s state. If there is a disagreement between managers, a bisection technique is used to resolve it. 

Users can select a group of validators to perform the consensus process for a DApp on the Arbitrum chain. This localized approach results in faster transaction processing.

What is the future of Arbitrum?

The early versions of Ethereum and Bitcoin prioritized decentralization and security over scalability, resulting in high gas fees on both platforms. However, Arbitrum has put forth an effort to solve this blockchain trilemma by implementing Optimistic Rollups that satisfy these three elements. 

Despite this, the Ethereum community believes that the most comprehensive long-term solution will involve the implementation of zk-Rollup. Arbitrum is the most advanced L2 platform and is expected to continue embracing current technology trends to scale the platform and promote its expansion.

Conclusion

The ARB token price surged by 10%, while the broader crypto market declined by 1.7%. Crypto enthusiasts predict a 120% surge in ARB price. Arbitrum technology can solve Ethereum’s congestion and high fees. Arbitrum is an advanced L2 platform expected to promote expansion.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.