Elliott is a British cryptocurrency journalist and copywriter. Having spent the past couple of years immersed in everything crypto, he now spends his time researching…
Arbitrum emerged as one of the best Ethereum scaling solutions last year. Since then, the blockchain has launched its governance token, ARB, through the most anticipated airdrop of 2023.
That said, ARB has already faced its fair share of controversy. In this Arbitrum price prediction, we discuss whether the FUD is justified, as well as give you our price estimates for 2024 – 2030 based on fundamental and technical analysis.
Arbitrum Price Prediction 2024-2030
End of 2024: With the Bitcoin halving set for early 2024, the bull market will be in full swing. This will cause a surge in demand for the Ethereum network, causing exorbitant gas fees and driving many users to layer two scaling solutions like Arbitrum. Therefore, we expect ARB to hit $3.5 by the end of 2024.
End of 2025: We expect lots of new cutting-edge applications on the Arbitrum blockchain, as well as its current ecosystem maturing and serving an increasing portion of the crypto community. With this in mind, we expect a price of $6 by the end of 2025.
End of 2030: By 2030, all the top EVM dApps will launch on Arbitrum; this will attract a lot of new liquidity added to the chain. Moreover, Arbitrum’s strong fundamentals mean the project has the potential for sustained, long-term growth, so our Arbitrum price prediction estimates $11 by the end of 2030.
Arbitrum is a layer two Ethereum scaling solution created by Off-chain Labs. Ever since its inception, it has been one of the top trending cryptos.
It launched in August 2021, with its initial seed funding round in January 2021, where it raised $3.8 million and then $20 million in series A. In 2021, it raised $120 million in its series B round, giving the chain a $1.2 billion valuation.
Immediately following the launch of Arbitrum’s mainnet, users began flocking to the chain, causing the total value locked (TVL) to climb exponentially. Just one month following its launch, Arbitrum’s TVL reached $800 million. The TVL peaked at around $2.35 billion in November 2021.
Following this, the TVL steadily declined as the crypto suffered a brutal bear market. Still, rumours of the Arbitrum token’s airdrop caused activity on the chain to pick up starting in July 2022.
One of the main reasons for the interest in the airdrop was the Optimism layer two coins airdrop at the end of May. Following the Optimism airdrop, many users shifted their focus to the Arbitrum chain, hoping to capture some ARB profits similarly.
Moreover, as the Arbitrum airdrop narrative was heating up, the cryptocurrency industry faced one of its most infamous scandals ever. The FTX exchange collapse meant many investors no longer trusted centralised exchanges.
This led to Ledger having its highest week of recorded sales as crypto holders moved their assets from exchanges. That said, FTX was the go-to exchange for perpetual futures contracts exchanges, and at the time, there were not many decentralised alternatives.
While plenty of AMM DEXs are on the market, the leading (and one of the first) perpetual exchanges, GMX, was built on the Arbitrum chain. Naturally, this caused a flood of new users to adopt the Arbitrum chain.
Looking at the GMX TVL chart on DefiLlama, we can see that the TVL has steadily increased since its launch, with the FTX collapse in September likely playing a significant role.
Instead of using a centralised exchange for futures trading, many traders have learned the importance of self-custody, so they are using the GMX exchange, thus boosting liquidity on the Arbitrum chain.
The Arbitrum airdrop occurred on March 16 2023, with users able to claim their tokens on March 23, 2023. Shortly after its launch, Arbitrum hit $1.49 before dropping off to lows of $1.1347.
Since its launch, the Arbitrum token has displayed high volatility, swinging as much as 30% in either direction in a single day.
As mentioned in the introduction, the token has already faced controversy. The Arbitrum Foundation’s first governance proposal caused a massive stir in the community.
The proposal asked whether the treasury should release 750 million ARB tokens to fund The Arbitrum Foundation. Although ARB holders voted against the proposal, the Foundation announced the vote was only to ratify a decision already made.
This caused a lot of holders to lose confidence in the coin, mainly since its core purpose is as a governance token to vote on matters relating to the project.
The botched AIP-1 proposal caused the price to sink to a low of $1.126, but the price has remained above this level since.
Looking ahead to 2024, the main factor affecting our Arbitrum coin price prediction is the Bitcoin halving.
What is the Bitcoin halving?
The Bitcoin halving is a change to the Bitcoin network where the amount of new Bitcoins issued as rewards is cut in half. This happens every four years, each time causing a supply shock to the Bitcoin market and causing a new crypto bull market.
As the Bitcoin halving takes place, we expect the bull market to begin, which has led to network congestion on the Ethereum chain in the past.
In the last bull market, the Polygon coin (the leading Ethereum scaling solution at the time) saw massive gains of 17990% since its purpose was to fix the Ethereum scalability issue. With this in mind, layer two projects can be some of the best coins to buy ahead of the next bull run.
While we expect this is already priced into ARB since it is a historical narrative, the Ethereum scalability issues will undoubtedly cause an influx of new liquidity to the Arbitrum network, causing the price to rise imminently.
Considering this, our Arbitrum price prediction forecasts a price of $3.5 by the end of 2024.
As more investors learn about the use case and need for the Arbitrum blockchain, we expect this to transfer into many new applications being developed on the chain.
Currently, the Arbitrum ecosystem consists of various innovative dApps, with the leader being GMX. As mentioned earlier, GMX is a perpetual decentralised exchange, allowing users to trade futures contracts without handing over custody of their crypto.
This is a massive step forward in the DeFi space, and since it’s the first of its kind, GMX has a first-movers advantage.
Moreover, since Arbitrum enables transactions at a fraction of the cost of Ethereum, the Arbitrum chain is the perfect infrastructure for a short-term trading protocol like GMX.
There are many more cutting-edge applications on the Arbitrum chain, primarily focusing on DeFi. For example, the third highest Abtritrum protocol by TVL, Radiant, is a lending and borrowing platform that leverages the ‘real-yield’ model to reward lenders with up to 81.19% APR.
Thanks to its low fees, high security and Ethereum compatibility, we expect innovation on the Arbitrum chain to continue into 2025, with current dApps like GMX and Radiant maturing and a new breed of dApps coming to fruition.
Therefore, our Arbitrum price prediction estimates a price of $6 by the end of 2025.
Arbitrum’s primary focus is solving Ethereum’s scalability issue. This means for Arbitrum to succeed long-term, Ethereum must remain the market-leading smart contract blockchain.
Ethereum’s roadmap shows a wide range of upgrades lined up for the coming years; they include everything from account abstraction (creating wallets without the user needing to manage private keys) to danksharding (a new form of scalability that relies on layer two rollups).
As Arbitrum is the leading layer two chain by TVL, it will become a core component of the Ethereum ecosystem. Arbitrum will help lower Ethereum transaction fees while maintaining the security and decentralisation of the network.
Therefore, the governance of the Arbitrum network will become of interest to many high-profile stakeholders, potentially even Ethereum Founder Vitalik Buterin himself. This will significantly increase demand for the Arbitrum coin over time.
On the other hand, it is important to consider that while Arbitrum’s market cap is currently $1.6 billion, its fully diluted market cap sits at $13.1 billion. This means a lot of locked tokens will come into circulation in the coming years, causing more sell pressure and preventing the Arbitrum coin from growing exponentially.
Nonetheless, we still expect a market cap of over $100 billion for the Arbitrum coin by 2030, considering its crucial role in Ethereum’s success.
Therefore, our Arbitrum price prediction estimates an Arbitrum crypto price of $11 by the end of 2030.
Below we have explained the key uses for ARB and how they could influence its price.
What is governance?
Governance refers to a decentralised means of voting on the direction of a crypto network or protocol. This can involve matters like deciding how to allocate the treasury fund or whether or not to implement an upgrade.
Gas fees on the Arbitrum chain will be settled in ETH rather than ARB. While this could lead to less demand for ARB, the team created the token as a way to empower the crypto community. ARB enables holders to control the direction of an important piece of the Ethereum ecosystem.
Besides governance, holding ARB is a fantastic way to speculate on the ecosystem’s growth. That said, what factors cause the ARB price to change?
If the Ethereum chain becomes congested, transactions become slower, and gas fees will rise. The last bull market saw average gas fees rise as high as 236 GWEI.
One of the main issues concerning whether ARB is one of the best long-term coins is the management of its treasury from The Arbitrum Foundation. Although the AIP-1 issue seems to have been resolved, it could impact the coin’s price if similar problems arise in the future.
As mentioned before, coins like GMX are highly in demand, and since they are native to the Arbitrum chain, holding ARB allows users to have a say over the infrastructure the coin is built on. This can prove valuable, particularly to large whales holding the GMX or other ecosystem coins.
Therefore, the growth of the Arbitrum ecosystem will inherently boost demand and price for ARB.
We have compared ARB price predictions from various crypto experts and analysts below.
Fundamentally, Arbitrum is positioned as one of the leading technologies in the crypto industry. That said, since its coin is only for governance and not utility, it might have a more challenging time exploding than other utility coins.
Buy ARB on Binance either directly with a card or on the spot market, depending on how fast you need the coins.
If you want to have your coins as soon as possible, open an account with Binance and verify it. This should take a few minutes. Add your card and select the “Deposit” option and then “Buy crypto with USD”. Select ARB from the list.
Binance may prompt you that you have to buy USDT first and then swap it for ARB, which is fine. However, this way you are likely to pay around 4% in fees.
Slightly cheaper alternative is to deposit funds via bank transfer and then buy ARB coins on the spot market. Depending on the transfer fees and amount transferred, it could cost you around 2%.
On top of that, you can trade on margin, trade crypto options and futures as well as automate your trading with bots and copy trading. With a plethora of useful features, Binance is definitely worth considering.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
As mentioned earlier, Arbitrum’s fully diluted market cap is $13.1 billion. Therefore, we expect a 739% return (or $11) for ARB by the end of 2030, but this is modest compared to some of our small-cap coin price predictions.
For example, our Launchpad XYZ price prediction estimates that the Launchpad XYZ crypto could result in a 1,300% in profit for presale investors. This is almost double the gains investors could potentially see with the ARB token, and many other analysts have predicted even greater returns for the Launchpad XYZ coin.
Many experts believe Launchpad XYZ could be the next coin to explode because it is essentially bringing web3 to the masses by aggregating a wide range of products and services into one easy-to-use platform.
One of the most significant barriers to entry into the crypto industry is the complex user experience. Launchpad XYZ has a long roadmap consisting of many different developments aimed at improving the web3 user experience.
Moreover, Launchpad’s native coin, LPX token, plays a central role in its ecosystem, meaning the coin’s price is tied to the project’s success.
Therefore, if the project can execute on its roadmap, we expect it to be one of the best long-term cryptos to buy.
Overall, Arbitrum is set to solve many problems the Ethereum network has been plagued with for years. It is certainly one of the best cryptos to buy for 10X gains, but you will have to wait a long time as much of its potential is already priced in.
On the other hand, new presale coins like $WSM allow investors to enter a coin from the ground up, potentially profiting as its roadmap comes to fruition.
Yes, Arbitrum’s token went live on March 23 2023, following its airdrop. The token grants users access to vote in The Arbitrum Foundation’s DAO. Holders can vote on matters relating to the direction of the blockchain and how its treasury fund is spent.
Arbitrum looks set to become a centrepiece in developing the Ethereum ecosystem. The Ethereum roadmap mentions the importance of layer two scaling solutions for the network to achieve its potential. We expect Arbitrum to play a key role since Arbitrum is the highest TVL layer two chain.
The Arbitrum network’s fundamentals stand out as some of the best in crypto. That said, ARB is only a governance token and already has a $13.1 billion fully diluted market cap, meaning there is little room for growth. On the other hand, current presale coins like AiDoge present investors with much more lucrative opportunities.
Elliott is a British cryptocurrency journalist and copywriter. Having spent the past couple of years immersed in everything crypto, he now spends his time researching the most impactful cryptocurrency trends. He looks for projects with long-term visions and is a huge believer that blockchain technology can solve the world's most pressing issues.
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