Over the past few years, the cryptocurrency space has seen the emergence of many new blockchains built as layer-2 scalability solutions for Ethereum.
They allow taking a lot of transaction load off-chain, thus allowing users to avoid the congestion that the second biggest chain faced many times during the first five years of its existence due to its immensely high fees and the continuously growing popularity of Ethereum. However, this blockchain is one of many layer-2 solutions now. Developers have also started building L2 chains on Bitcoin: The Lightning Network, Rootstock, Dovi, Liquid Network, etc.
Arbitrum (ARB) is one of these layer-2 networks which look very promising now. Many cryptocurrency traders and investors are looking closely at it and adding ARB to their well-diversified crypto portfolios. Initially, the Arbitrum One mainnet beta was launched in 2021 and then upgraded to the Nitro tech stack in August 2022.
What is Arbitrum, and who created it
When building Arbitrum, the creators were after enhancing the transaction speed, increasing the scalability of Ethereum, and also wanted to make transfers on this popular DeFi and smart-contract blockchain cost-efficient.
While improving Ethereum’s fundamental features, Arbitrum uses the benefits provided by Ethereum, such as security and compatibility. Also, as with numerous layer-2 solutions, Arbitrum provides cheaper fees and higher scalability.
The Arbitrium Foundation and the Arbitrum blockchain were built by a New York-based development company, Offchain Labs. In the spring of 2023, ARB tokens were, for the first time, distributed to this blockchain’s users through a much-awaited airdrop. ARB token is used for governance in the Arbitrum DAO – a decentralized autonomous organization.
ARB holders use the token to vote on developers’ various proposals that will impact the protocol’s features, upgrades integrated into it, allocation of funds, etc. This step allowed the developers to make Arbitrum more decentralized in line with the true goal of crypto set by the Bitcoin founder Satoshi Nakamoto, who created BTC to oppose the heavily centralized banking system and the system of fiat currencies.
Arbitrium makes extensive partnerships in South Korea
The price growth of any coin mainly depends on how wide the utility is and the adoption of the blockchain it runs on. This week, the Arbitrum Foundation announced a strategic partnership with a local Web3 market strategy consulting firm, DeSpread, based in South Korea.
Together, they will be working on creating a thriving developer ecosystem in that country. DeSpread will prepare the ground for Arbitrum’s expansion to the local market by providing research content and development guides. DeSpread will introduce Arbitrum to the local developer community, removing the language and cultural barriers for the latter.
Besides that, using their extensive experience and know-how, DeSpread will actively help Arbitrum get new customers among local companies who wish to adopt blockchain technology. DeSpread will also collaborate with Arbitrum to help it expand its on-chain user base using DeSpread’s on-chain attribution platform titled 3ridge.
A substantial expansion of users and entering the South Korean market (a major one in the cryptocurrency space) promises to open fine prospects for a utility increase and, therefore, can positively impact the ARB price in the future.
Arbitrum (ARB) price prediction 2024
Arbitrum is ranked as the top-46 cryptocurrency on CoinMarketCap with a market capitalization of $2,507,569,722. It sits next to the privacy coin Monero (XMR), which was popular among darknet users in the past (top 45 spot).
ARB is trading at $1.45 as of this writing, showing a minor rise over the last 24 hours and a 7% increase in the previous seven days.
Based on all the factors mentioned in this article, experts believe that the broad adoption of Arbitrum worldwide can help ARB significantly increase this year and go as high as $3.92.
