ARB, the native token of Arbitrum, Ethereum’s Layer 2 scaling solution, has seen a surge in mentions on social media, indicating increased interest and potential for price appreciation.
According to alpha scan data On January 4th, ARB had its “highest sentiment” in the past 24 hours, with over 40% of weekly mentions occurring within this period. Notably, ARB is the most mentioned token after Bitcoin. This spike in positive sentiment is shown on a weekly time frame, with over 30% of his total monthly mentions occurring in his last week of December.
ARB Trends as Prices Rise to 2024 Highs
Social media mentions can be a great indicator for tracking sentiment. Therefore, the trend of ARB following Bitcoin may indicate that the crypto community is paying attention to the project and tracking its progress. The spike in ARB’s social media numbers is a net bullish for the project, as there were no hacks or significant losses on January 3rd.
What’s interesting is that ARB is trending across social media platforms at a time when token prices are reaching all-time highs and decentralized finance (DeFi) activity is recovering. According to Binance data, the daily chart shows ARB changing hands around the token’s highest price point of $2.
In 2023 alone, ARB has risen nearly 300% from its March 2023 low, peaking in late December. The uptrend continues, with the bulls continuing to push and absorbing any attempts to hit the lows.
Arbitrum plays a key role in addressing Ethereum’s scaling limitations. The Layer 2 rollup option reroutes transactions from the mainnet and relieves the base layer. This helps keep gas bills low and improves the overall user experience.
Based on L2Beat data January 4th, Arbitrum is the largest Layer 2 scaling solution with over $9.8 billion in total value locked (TVL). Notably, Arbitrum has implemented an authorization fraud prevention system that over-enforces transaction transparency, allowing for effective monitoring of sequencer activity.
Arbitrum Orbit supports custom tokens for gas payments
The increase in social media activity also follows recent enhancements. arbitram orbit. Launched in Q1 2023, the platform allows developers to build layer 3 protocols on top of his Arbitrum.
Protocol developers have added support for custom gas tokens. With this feature, the deployer of the Orbit chain no longer needs to use her ETH to pay for gas fees, instead he can choose her ERC-20 tokens, including ARB.
The evolution of Arbitrum Orbit will provide more flexibility for developers and projects launching layer 3 solutions. This move is also likely to increase the utility of the respective tokens, boosting demand and even prices since they are not tied to using ETH or explicitly ARB to pay for gas fees.
Featured image from Canva, chart from TradingView