Alongside the rest of the crypto market, Arbitrum, a layer-two scaling solution for Ethereum, has surged by 44% in the past week, reaching major highs. Though the surge can be attributed to the ubiquitous uptrend in the market, the massive whale buying of the token appears to be a contributor to its bullish trend.
The buying spree comes weeks after Arbitrum suffered a never-ending fear, uncertainty, and doubt (FUD) in the crypto community. Though the FUD resulted in a plummet in the $ARB market, the asset has since rebounded and has picked up a rally.
Whales Buying Frenzy Sends Arbitrum Soaring
According to data from Lookonchain, whales have been on a buying spree on Arbitrum native token $ARB. Nine whales purchased 12.4 million $ARB tokens in the past seven days, equivalent to $21 million. Meanwhile, eleven other whales still hold a huge sum of $ARB tokens, and only three sold 22.8 million $ARB tokens worth $38 million.
The massive buying spree by whales suggests they are bullish on Arbitrum’s potential to revolutionize the Ethereum ecosystem. Arbitrum aims to reduce congestion on the Ethereum network as a scaling solution by enabling faster and cheaper transactions.
Its innovative design uses a unique roll-up technology aggregating multiple transactions into a single batch, allowing for faster settlement times and reducing gas fees.
The roll-up technology has attracted significant interest from Ethereum developers and enthusiasts, who believe it could help Ethereum scale meet the growing demand for decentralized applications (dApps) and non-fungible tokens (NFTs).
The current bullish sentiment surrounding Arbitrum and $ARB tokens suggests that there could be significant gains for early investors. As the Ethereum network continues to grow and evolve, layer-two solutions like Arbitrum will likely become increasingly important, providing a scalable and efficient infrastructure for decentralized applications.
$ARB Surges 44% In The Past Week
After surviving a bearish-filled weekend weeks ago, $ARB is currently in the green, up by 44% in the last 7 days. The asset’s price has moved from trading as low as $1.17 on April 10 to trading nearly at $2 with a trading price of $1.72 at the time of writing. $ARB is currently up by 6.3% in the last 24 hours.
$ARB’s market cap has also surged, moving the token rise from ranking at #41 to ranking #32 today in terms of market capitalization among other cryptocurrencies in the global crypto market.
In the past 7 days, over $500 million has been added to the asset’s market capitalization. Its market cap currently sits at $2.2 billion, up 38% in the last 7 days.
Notably, the massive whale buying indicates smart money is bullish on the project’s prospects. As more developers and users flock to the platform, the demand for $ARB tokens is expected to increase.
Featured image from Unsplash, Chart from TradingView
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