Why Arbitrum (ARB) is Growing and What is The Price Prediction For 2024

By
Tana Harina

01/03/2024

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Arbitrum started 2024 with a rapid rise, reaching $1.8.

Arbitrum (ARB) crisis

Overall, 2023 was marked by an increase in demand for L2 solutions. The emergence of Arbitrum in the L2 ecosystem has attracted a significant number of new entrants. Arbitrum immediately performed well during the general downturn in the cryptocurrency market in 2023. Arbitrum was the leader among L2 solutions and often outperformed its main competitor, Optimism. However, with the introduction of Base, the Arbitrum network had to give up its position.

Yet, it was not crucial and as of December 2023, user activity on Arbitrum's network increased significantly, with daily transactions growing by 58%.

Why Arbitrum (ARB) is growing?

The year 2024 started on a positive note for Arbitrum. Firstly, Arbitrum consolidated its position as the leading L2 network. The network's TVL reached the $10.32 billion mark. This emphasizes the platform's appeal to a wide range of users and its growing popularity. Such an impressive result had a positive impact on the price dynamics of the network's native token.

The token's growth can also be attributed to the market's expectations about the Ethereum Improvement Proposal (EIP) 4844. Many believe that this proposal will catalyze the scalability of rollup solutions (Arbitrum and Optimism, for example).

Arbitrum (ARB) forecast for 2024

ARB has jumped 7.64% in the last 24 hours to reach $1.89 at the time of writing. Over the past seven days, the token has risen 37.45%.

The asset tested the support level of $1.8, but did not consolidate. However, experts are confident that ARB will soon rise to the $2 mark on the back of increased rumors about the approval of Bitcoin ETFs. The scenario of growth to two dollars is the most probable, given the fact that the token is on an uptrend.

This forecast is not a one hundred percent statement. The cryptocurrency market is known for its volatility and unpredictability. Remember the importance of doing your own research.

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