Man, things got heated in the cryptocurrency market! The Arbitrum coin (ARB) took a dive of more than 10%, and it's not because the entire market has crashed (which also slipped), but due to an internal move that has people wide awake. 📉
Look, the hardest hit for Arbitrum is the low activity on its network. Transactions, new wallets, and even verified contracts have plummeted. It's as if people suddenly lost interest and left the platform a bit aside. Imagine, transaction fees dropped by 74%! 😱 It's like a store suddenly running out of customers.
Additionally, there is another key play: a lot of new ARB tokens have just been released to the market, about 92.65 million to be exact. This is like suddenly having more bills of the same denomination, which causes its value to drop. When there is a lot of supply of something and little demand, the price goes down, it's the law of economics! 🤷♂️
But be careful, not everything is drama. Despite this downturn, things are not entirely lost for Arbitrum. Its Total Value Locked (TVL) —which is the amount of money that people have invested in the system— continues to rise and is close to its all-time high. This tells us that, although daily activity has decreased, the people who are already in still trust the project in the long term and have not withdrawn their funds. It's as if the ship is moving, but the anchor remains firm. ⚓️
In summary, Arbitrum is in a testing moment. If it manages to stay above the $0.48 mark, it could bounce back. But if it fails to do so, we could see an even larger drop. This is not just a price dip, it's a signal that investors are reevaluating the situation.
So, the question is: will this be a temporary correction or the start of a deeper fall for Arbitrum? Only time will tell. Keep your eyes peeled. 👀$ARB
