Social media mentions of ARB, the native token of Arbitrum, Ethereum’s layer 2 scaling solution, are increasing, suggesting growing interest and potential price appreciation.
According to AlphaScan data On January 4th, ARB had the “highest sentiment” of the past 24 hours, with over 40% of all weekly mentions occurring within this period. In particular, ARB was the second most talked about token after Bitcoin. This surge in positive sentiment is seen on a weekly basis, with more than 30% of all monthly mentions occurring in the last week of December.
ARB is trending upward with prices reaching 2024 highs.
Social media mentions can be a good indicator for tracking sentiment. So, with ARB trends lagging behind only Bitcoin, it can show that the cryptocurrency community is paying attention to the project and tracking its progress. There were no hacks or steep losses on January 3, so the spike in ARB social media numbers is a net bullish thing for the project.
Interestingly, ARB is trending across social media platforms when the token price is at an all-time high and decentralized finance (DeFi) activity is recovering. According to Binance data, on the daily chart, ARB is changing hands at around $2, the highest price for the token.
In 2023 alone, ARB surged nearly 300% from its March 2023 low, peaking in late December. The uptrend remains and bulls continue to absorb all attempts to make lower lows.
Arbitrum plays a key role in solving Ethereum’s scaling limitations. The Layer 2 rollup option alleviates the base layer by rerouting transactions on the mainnet. This helps keep gas bills low and improves the overall user experience.
Based on L2Beat data As of January 4, Arbitrum is the largest layer 2 scaling solution with total value locked (TVL) of over $9.8 billion. In particular, Arbitrum has implemented an anti-permission fraud system that significantly improves transaction transparency, enabling effective monitoring of sequencer activity.
Arbitrum Orbit supports custom tokens for gas payments.
The increase in social media activity is also due to recent enhancements. Orbital Determination. Launched in Q1 2023, this platform will allow developers to build layer 3 protocols on Arbitrum.
Protocol developers have now added support for custom gas tokens. This feature allows Orbit chain distributors to select ERC-20 tokens, including ARB, instead of paying gas fees using ETH.
As Arbitrum Orbit evolves, developers and projects launching Layer 3 solutions will have more flexibility. This move will also improve the utility of those tokens since they are not tied to using ETH or explicitly ARB to pay gas fees, which will boost demand and even price.
Featured image from Canva, chart from TradingView
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Source: NewsBTC.com