Arbitrum (ARB) Price Prediction: Will ARB reach $2.5 in 2023?

What is Arbitrum?

Arbitrum, a new solution in the Ethereum layer 2 scaling space, has been gaining attention for its ability to support smart contracts without the usual limitations of scalability and privacy. This new technology offers users reduced transaction fees and less congestion compared to the Ethereum network. 

With the help of Arbitrum, developers can create smart contracts that specify the behavior of a virtual machine (VM) to execute the contract’s intended functionality. Notably, Arbitrum offers significant improvements in scalability and privacy that can be leveraged by developers seeking more efficient and secure ways to build smart contracts. As this new technology continues to evolve, it will be fascinating to see how it impacts the overall landscape of the Ethereum network and the wider blockchain industry.

Arbitrum has created quite a buzz in the world of blockchain technology. This optimistic rollup-based solution is changing the game for smart contracts, especially those using Ethereum. By allowing messages to be sent between smart contracts and those in Arbitrum’s second chain layer, this technology can scale smart contracts with ease, freeing them from the limitations of scalability and privacy.

Arbitrum operates by processing most transactions at layer-2 and then recording the results in the main chain. This approach has resulted in a significant increase in the platform’s speed and efficiency. Validators and full nodes are involved in observing the chain’s state and combining layer-1 transactions. Rewards are paid in ETH to Aggregators that send transactions to the layer-1 chain.

Arbitrum’s unique features include the AnyTrust channel and sidechain, which will be available in future versions. Moreover, the platform ensures that all validators play fair through its challenging step for block rollup. The validators are expected to confirm the correctness of the blocks, and in case of any issue, they can issue a “challenge.”

The Arbitrum Virtual Machine (AVM) is the platform’s custom virtual machine that serves as the execution area for Arbitrum smart contracts. It sits atop EthBridge, a smart contract collection that interacts with the Arbitrum chain. The AVM is compatible with Ethereum smart contracts, making it easy to translate and run them on the Arbitrum platform. With these features, Arbitrum has positioned itself as an innovative and efficient solution for developers looking to create smart contracts that can scale without any limitations.

What is the main advantage of Arbitrum (ARB)?

Arbitrum is a technology that enables developers to build on top of Ethereum’s smart contracts without having to learn a new programming language. This feature is due to its compatibility with Ethereum’s Virtual Machine (EVM), which makes the transition much smoother for developers.

In addition, Arbitrum significantly reduces transaction costs, making it a practical solution for those looking to save money. Despite the cost savings, validators are still compensated with sufficient incentives for their contributions.

The development team has provided comprehensive documentation and tools to help developers get started on the platform. There is no need to download any specific software or plugins, as everything is already available on Ethereum.

Arbitrum has also partnered with major Ethereum-based projects such as Uniswap, DODO, and Sushiswap, creating a strong ecosystem for developers and users alike. This technology’s efficiency, compatibility, and partnerships make it a powerful solution for anyone looking to build on Ethereum’s blockchain.

Arbitrum (ARB) Current Market Status

According to CoinMarketCap, as of April 19th, 2023, the price of Arbitrum stands at $1.55, showing a decrease of 13.3% in the last 24 hours. However, the 24-hour low and high for Arbitrum are $1.53 and $1.77, respectively, indicating a volatile market.

Despite the slight decrease in price, the trading volume for Arbitrum has been on the rise, with a total of $1.6 Billion in the past 24 hours. Currently ranked as the 33rd largest cryptocurrency by market cap, with a market dominance of 0.16%, Arbitrum has a market cap of $1.9 Billion, with a fully diluted market cap of $15.4 Billion. It will be interesting to see how Arbitrum performs in the coming days as its popularity and market reach continue to grow.

Arbitrum (ARB) Price Prediction 2023

According to the chart above, we can observe the support and resistance zones of ARB for the upcoming days. If ARB can rise up more and break the resistance 2 level, we can expect ARB price to soar as high as 2.35 which is at the Resistance 3 level.

However, another possible scenario is that if ARB breaks the current 200-day moving average and falls lower, ARB can dump as low as $1.2 which is the support 3 level.

Conclusion

As said above, the Arbitrum price may even reach above $10 if investors have decided that crypto is a good investment, along with mainstream cryptocurrencies.