A new week begins!
Arbitrum is currently the largest L2 blockchain.
Will $ARB reach $100 in the next bull cycle? Follow me and find out.
Here is a free research report for August!
1. Project Overview
Arbitrum provides a set of expansion solutions: optimistic rollup-based L2 summary.
Arbitrum One is known as the ultra-fast L2 chain of Nova chain, based on Antrust technology, with a separate DA layer.
Arbitrum Nitro A technology stack designed to launch a custom L3 based on Arbitrum’s optimistic rollup and Antrust technology.
ARB is the governance token of ArbitrumDAO, which oversees the development and marketing of Arbitrum Chains.
ARB Key Indicators
• Price: $1.18
• Market value: $1.5 billion
•FDV: $1.177 billion
• ATH: $9.86
• Decline from ATH: -88.1%
•Total supply: 10B
• Circulating Supply: 1.275B (12.75%)
Technology Insights
•Performance: +7.5 TPS
•30D T×Count: 20.50M
• Transfer fee per T×: $0.06
• Swap cost per Tx: $0.19
• Rolling phase: 1
•Technology: Optimistic Rollup
•Operator：Single Sequencer
2. Token Economics
Token Applications
ARB is the governance token of Arbitrum DAO.
ArbitrumDAO governs Arbitrum One and NOVA. ARB holders can receive voting rights based on the percentage of ARB supply they hold.
Demand drivers
Arbitrum has launched a blockchain toolkit that enables projects to leverage Anytrust and Optimistic Rollup technologies, allowing them to launch their own sovereign chains to settle on the Arbitrum chain. Projects need to submit proposals to the Arbitrum DAO to become part of the Orbitrum ecosystem.
Value Capture
Currently, governance is the only value capture for holders. Active DAO governance and potential future governance needs arising from project launch.
In the long run, Orbit Chains can unlock additional value for holders.
Supply Allocation and Inflation
The maximum supply of ARB is set at 10B, with a circulating supply of 1.275B. The average annual emission of supply inflation is expected to be +16.77% over the next 4 years, and once the 10B limit is reached, the inflation rate will be up to 2%.
3. On-chain observation
•There has been positive inflows into the Arbitrum Bridge via Ethereum L1 over the past 30 days, suggesting that network activity could increase in the coming weeks.
• Arbitrum’s revenue has been trending downwards over the past 90 days. However, once L3 chains enter the Arbitrum Orbit ecosystem, we may predict an upward trend in this metric.
4. DeFI Ecosystem
•Total value locked: $194.8 million
• Top category: Derivatives
• Top protocols: GMX, Uniswap V3, Radiant
• TVL change % in the past 30 days: -10.23%
• TVL change % in the past 90 days: 21.22%
• Market share: 4.72%
Recent key findings
• In recent years, derivatives have become prominent DeFi primitives. GMX introduced such primitives on Arbitrum and has now launched more than 10 projects in the derivatives category on the Arbitrum network.
• "Radiant Protocol" is currently the fastest growing money market protocol. Additionally, it introduces a new cross-chain lending primitive that is expected to gain significant traction in the near future.
5. NFT Ecosystem
• Sales (30 days): $1.87 million
• Top Marketplaces: Trove, Opensea
• Popular collections (30 days): Treasures, Bridgeworld
• Market share: <0.5%
Key Findings
•NFTs in the Treasure ecosystem are experiencing ongoing sales, while traction for NFTs on Arbitrum is almost negligible.
6. Blockchain Game Ecosystem
• Active games: 22
• Daily active players: 5.34K
• Top games: MEET, SpartaDEX, Treasure DAO
• Market share: +2%
Key Findings
• SpartaDEX has recently become a top game on Arbitrum. They developed a gamified DeFi platform that has successfully attracted over $10M in Total Value Locked (TVL) and 2,000 active gamers.
7. Milestones and Important Events
• Arbitrum recently launched Arbitrum Orbit, a blockchain toolkit for launching custom L3s.
• Arbitrum launches a grant program to support builders and developers.
• Arbitrum launched BOLD, a permissionless verification protocol for the Arbitrum chain.
• Arbitrum passed a proposal to implement support for account abstraction.
• Arbitrum generated over $40 million in revenue over the past year.
• Arbitrum has become a leading L2 aggregation with over $1.95 billion in total value locked (TVL) and a thriving ecosystem of over 700 projects.
8. Future roadmap
• Offchain Lab is developing a virtual machine environment called Stylus, which will enable developers to deploy programs written in various languages such as C, C++, Rust, etc. to run with the EVM on Arbitrum. Arbitrum Stylus aims to attract more developers to deploy their Web3 dApps and smart contracts on the Arbitrum network.
• Arbitrum will soon start promoting L3 projects through its Orbit Stack. We can expect promising specific application chains to be launched on Arbitrum.
9. Ecosystem Head Token
GMX（GMX）
• Market value: $448.3 million
• Growth Drivers: Derivatives represent the largest market for DEXs, with GMX in a leading position with its innovative true yield model.
Treasure DAO (MAGIC)
• Market value: $168.6 million
• Growth Drivers: Blockchain gaming will be a major theme in the upcoming bull cycle. MAGIC is driving the Web3 gaming ecosystem launched by Treasure DAO.
Radiant Capital(RNDT)
• Market capitalization: $86.3 million
• Growth Drivers: Omnichain lending is expected to become a popular DeFi category in the future. Radiant Capital is at the forefront of the omnichain money market platform.
Pendle Finance (PENDLE)
• Market value: $68.5 million
• Growth Drivers: Pendle Finance introduces an intriguing DeFi primitive that enables traders to participate in short- and long-term trading of Ethereum LSD yields. Pendle Finance’s adoption is expected to expand as Ethereum staking rates rise.
Note: As the crypto markets and the Arbitrum ecosystem continue to evolve, the information in this topic is subject to change. We encourage readers to stay informed of the latest developments and market trends.
I hope this topic is helpful to you. 🙏Thank you for your likes and support👍