Buy Arbitrum (ARB): value and price trends

What is Arbitrum (ARB)

Arbitrum is a scaling solution for Ethereum, that is a secondary network (Layer 2) that allows transactions to be carried out more efficiently and cheaply. It is among the blockchains with the highest total value locked (TVL) in the sector. The ARB token is mainly used to take part in the protocol’s governance, i.e. to vote on the decisions that steer its development.

The network hosts many of the leading decentralised applications of the Ethereum ecosystem, such as Uniswap and Aave, alongside native projects. ARB was distributed through an airdrop on 23 March 2023 to those who had previously interacted with the Layer 2.

How it works

Arbitrum was created in 2018 by Off Chain Labs, a New York startup focused on scaling solutions for Web3. It uses a technology called optimistic rollup: it bundles transactions into “batches” and runs them on its own network, then sends them to Ethereum’s main chain, where they are processed and added to a block.

In this way Arbitrum allows interaction with the smart contracts of decentralised applications (dapps) faster and more cheaply than operating directly on Ethereum, while inheriting its security.

Price trends and what to consider

Like all crypto-assets, ARB has shown a highly volatile price trend: after its all-time high of around $2.2 reached in January 2024, it went through a long downward phase. Its quotations can be influenced by the general trend of the crypto market, by activity on the network and by governance decisions.

Past performance is not a guarantee of future results.