2023-04-27
Arbitrum is a layer 2 scaling solution
for Ethereum blockchain that enables fast and low-cost transactions. Off-chain
labs is the company that developed Arbitrum. It was founded in 2018. Arbitrum
mainnet went live in 2021.
Founders
Arbitrum founders are computer scientist and software developers.
Ed Felten (Co-Founder and Chief Scientist)
Steven Goldfeder (Co-Founder and CEO)
Harry Kalodner (Co-Founder
and CTO)
Technology
Arbitrum uses Optimistic Rollup scaling
technology. It executes transactions on the Arbitrum network and roll those
transactions up into one transaction and send it back to the Ethereum network.
This reduces the congestion and fees on the Ethereum network, while maintaining
its security and decentralization.
Abritrum network can process 40,000
transactions per second.
Total Value Locked by Blockchains
1. Ethereum $28.91 billion.
2. Tron $5.41 billion.
3. BNB Chain $4.62 billion.
4. Arbitrum $2.21 billion.
5. Polygon $1.05 billion.
6. Optimism $915 million.
7. Avalanche
$801 million.
8. Fantom $432 million.
Top TVL Ranking on Arbitrum
1. GMX Decentralizaed Exchange $576
million.
2. Uniswap V3 $298 million.
3. Radiant $157 million.
4. Stargate $123 million.
5. AAVE $121 million.
6. Camelot $96 million.
7. Curve $93 million.
8. Sushi $92 million.
9. Balancer $80 million.
As of April 27, 2023.
ARB Token
ARB token is the native token of
Arbitrum. It is a governance token that allow holders to participate in the
governance of Arbitrum, voting on proposals and upgrades that affect the
protocol. ARB token is designed to be compatible with the ERC-20 standard,
meaning that it can be easily integrated with existing Ethereum wallets and
applications.
ARB Token Allocation
Token Supply: 10 billion ARB
with 2% inflation rate.
42.78% Arbitrum DAO
Treasury
26.94% Offchain Labs
Team and Future Team + Advisors
17.53% Offchain Labs
Investors
11.62% Users of the
Arbitrum platform (via airdrop to user wallet addresses)
1.13% DAOs building apps on Arbitrum
(via airdrop to DAO treasury addresses)
Layer 2 blockchain tokens by Market
Cap.
1. Polygon (MATIC) $9.2 billion market
cap.
2. Arbitrum (ARB) $1.8 billion market
cap.
3. Optimism (OP) $691 million market
cap.
Advantage
-Arbitrum is the second largest layer 2
blockchain with top DeFi platforms running on its network.
Disadvantage
-ARB tokens are governance tokens.
Arbitrum uses ETH as a means to pay gas fees on its network.
Price Prediction
Current market cap of Arbitrum is $1.8
billion. The most of expensive price Arbitrum can reach is $3.6 billion or 100%
gain which is on par with Chainlink and Cosmos.
Chainlink, Cosmos, and Arbitrum can
have similar valuation as they are infrastructure for crypto economy. However,
they will value less than many layer 1 blockchains as their tokens are not use for gas fees.
In conclusion, currently ARB is at fair price, so there is only 100% upside for Arbitrum price to go up. It's a very narrow upside.
