- Arbitrum has made history in total transaction boost sparked by Inscriptions.
- Arbitrum now seeks to reclaim lost price levels as bull market approaches.
Arbitrum (ARB), a Layer-2 blockchain, has recently entered the spotlight due to an increase in network activity following the emergence of EVM (Ethereum Virtual Machine) Inscriptions, which are similar to Bitcoin Ordinals. As the blockchain industry continues to innovate, the question on the horizon now is whether or not Arbitrum’s Inscriptions frenzy is the future of blockchain transactions.
Arbitrum Sees Massive Boost in Network Activity
According to on-chain analytics firm IntoTheBlock, Arbitrum witnessed a record-breaking number of daily transactions, surpassing 5.4 million transactions during a weekend. EVM Inscriptions, analogous to Bitcoin Ordinals, were identified as the driving force behind this surge in on-chain traffic. Remarkably, nearly 60% of all transactions on Arbitrum in the past week were associated with inscription activity.
Drawing inspiration from Bitcoin’s BRC-20s, EVM chains have embraced a token standard that allows the inscription of information, including Non-Fungible Tokens (NFTs), on the blockchain. One of the notable advantages of Inscriptions is their cost-effectiveness, making them an attractive option for users.
While the Inscriptions frenzy brought about an increase in network activity, it also presented challenges. On the day when transactions peaked, Arbitrum experienced a brief outage, marking the first downtime in the network over the past 90 days. However, the platform swiftly addressed the issue, restoring normal operations within two hours. This incident, nonetheless, prompted discussions about Arbitrum’s load-bearing capabilities.
Despite the increase in network activity, the native token ARB lost 4.78% of its value over the week. It’s worth mentioning that ARB just serves as a governance token and receives no value from Arbitrum’s on-chain operations.
However, the token is currently trading at $1.12, up by 1.03% in the last 24 hours. Additionally, the market cap stands at $1.4 billion, and the trading volume is $321.3 million, indicating potential resistance in the market.
Arbitrum’s Historical Performance and Future Outlook
Arbitrum has historically experienced fluctuations in its token value, reaching an all-time high of $11.80 in March due to heightened network activity, sparked by its massive ARB airdrop. However, a subsequent sell-off pushed the token below $1.
Surprisingly, Arbitrum has now reclaimed the $1 mark, sparking optimism as the next market bull approaches. With its Layer-2 technology for Ethereum apps, Arbitrum offers personalized blockchains with robust security, fast throughput, and permissionless settings.
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Arbitrum’s recent hard fork approval by the Arbitrum DAO, with over 99% community support, sets the stage for significant advancements. The proposed hard fork aims to enhance the network’s fees and infrastructure.
Furthermore, Primex Finance, a non-custodial protocol for spot margin trading on decentralized exchanges, has deployed on Arbitrum One, indicating growing multichain initiatives. Notably, Primex Finance plays a crucial role in unifying liquidity in the Decentralized Finance (DeFi) market, connecting lenders with traders for spot margin trading.
The protocol’s expansion to Arbitrum will enhance user flexibility, improve the trading and lending experience, and broaden its user base.
