Arbitrum Price Prediction 2023-2030

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 2023 – 2030 based on fundamental and technical analysis.

Arbitrum Price History

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.

Mainnet Launch

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.

FTX Collapse

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.

ARB Goes Live

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.

Arbitrum Price Prediction 2023

The Arbitrium Foundation reinstilled confidence by stating they would only move the tokens once the community approved it. Moreover, the second proposal, AIP-1.2, aimed to amend some of The Arbitrum Foundation’s ambiguous docs.

The proposal offers a greater degree of control to the DAO over matters like lowering the threshold of the number of tokens required to submit a proposal and clarifies the DAO can replace The Arbitrum Foundation’s directors.

Overall, this helps clears up the major concern relating to Arbitrum, mainly since governance is one of the token’s primary functions.

With that in mind, we can now assess how Arbitrum could perform throughout 2023.

With a market cap to TVL ratio of 0.76, Arbitrum has one of the best ratios on the market. In comparison, Ethereum’s market cap to TVL is 7.94. That said, just 12.75% of Arbitrum coins are circulating, so this ratio will likely decrease as the circulating supply increases.

However, this shows that the Arbitrum chain is highly active, with DefiLlama also showings it has had the third-highest 24-hour trading volume behind Ethereum and Binance. Moreover, despite having a much smaller market cap, Abitrum’s TVL is 121% higher than Polygon’s.

On the other hand, Polygon’s coin provides more utility, such as settling gas fees, whereas the ARB token is for governance only. This could be why the ARB market cap is lower than Polygon’s, despite having a higher TVL.

This fundamental analysis shows that the Arbitrum ecosystem is thriving, and the coin is likely neither under nor over-valued. Therefore, we expect the price to move in unison with the rest of the market in the short term.

We must look at the broader crypto market to understand the future ARB price.

Cryptoassets are highly volatile and unregulated in most EU countries, Australia and the UK. No consumer protection. Tax on profits may apply. Your capital is at risk.

Equities

The crypto markets are currently in limbo. Although Bitcoin has broken out of a long-term downtrend, global macroeconomics look undesirable, with investors expecting the equities markets to enter a recession.

Historically, the crypto markets have moved along side the equities markets. Accordingly, if the recession occurs, the crypto markets will plunge along with the equities market.

Nonetheless, looking at the weekly timeframe SPX chart on TradingView, the S&P 500 has recently broken a year-long downtrend.

The following month will be crucial in whether the price will continue to climb or fall in 2023. Breaking the 4190 mark will establish a new short-term uptrend on the weekly time frame, giving the crypto markets a chance to get the next leg up before Bitcoin halves.

While many macroeconomic factors point towards a recession, the recent bank failures combined with the Bitcoin and SPX breakouts tell us that the crypto markets could finish 2023 on a high.

If this is the case, we expect Arbitrum to rise with the rest of the markets, potentially outpacing it due to the increasing demand for lower transaction fees as Ethereum becomes congested. Therefore, our Arbitrum price prediction estimates a price of $2.1 by the end of 2023.

Arbitrum Price Prediction 2024

Looking ahead to 2024, the main factor affecting our Arbitrum coin price prediction is the Bitcoin halving.

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.

Arbitrum Price Forecast for 2025

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.

ARB Price Prediction 2025-2030

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.

Potential Highs & Lows of Arbitrum Crypto Price

What is Arbitrum Coin Used For?

Below we have explained the key uses for ARB and how they could influence its price.

Governance

Arbitrum voting takes place on-chain, with the entire process lasting between 21 and 37 days. Voting is weighted depending on the number of tokens users hold; the more they have, the more their vote is worth.

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.

What Factors Drive the Price of Arbitrum Crypto?

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?

Ethereum Congestion

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.

The Arbitrum Foundation

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.

The Arbitrum Ecosystem

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.

What do Other Analysts Predict for Arbitrum?

We have compared ARB price predictions from various crypto experts and analysts below.

Is Arbitrum the Best Crypto to Buy Now?

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. So let’s have a look at some of the best Arbitrum network tokens to buy in 2023. Currently, one of the most promising utility coins is AiDoge.

AiDoge

One of the best-performing utility coins at the moment is AiDoge. Widely regarded as one of the best cryptos to buy, the Techopedia AiDoge price prediction estimates the coin could net investors a 284% return by the end of 2023.

 

$Ai is the AiDoge coin utility token for its ecosystem. It enables users to purchase credits for AI-powered meme creation and can also be used for staking and voting rights.

For this reason, providing the AiDoge ecosystem is in demand, then the price of the AiDoge token will increase. In contrast, despite Arbitrum outperforming other layer one and two blockchains, its market cap was still considerably lower.

The AiDoge ecosystem is a presale cryptocurrency that enables users to generate memes with text-based prompts. Since it is currently in its first round presale, investors can purchase the token at a discounted price of $0.00002600.

The coin has 20 presale rounds where the price will incrementally rise each time. By the time it launches on exchanges, the price will be set at $0.0000336. Following this, supply and demand will take over, and considering the coin has been touted as one of the best presale cryptos to buy, plus its capped supply and strong tokenomics, the future looks bright for AiDoge.

However, as with any investment, it is not guaranteed to be profitable in the long term.

That said, if you are looking for crypto which can prove very profitable in the long run, it is best to shift your attention to low market-cap coins, especially one in an explosive niche such as top AI coins.

Launchpad XYZ

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.

Conclusion

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.

Cryptoassets are highly volatile and unregulated in most EU countries, Australia and the UK. No consumer protection. Tax on profits may apply. Your capital is at risk.

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