- ARB CEX transactions have been an eyesore as users preferred DEXs.
- The initial hype around the token was nowhere near its earlier crest.
Users of Arbitrum [ARB], the native token of the burgeoning layer 2 scaling solution, have been caught between distress and glee since the protocol’s reward distribution. While many have praised the protocol’s efficiency and speed, concerns have been raised about actual participation with the token.
How much are 1,10,100 ARBs worth today?
Free is not always fair
In a 3 April examination of the ARB market, Santiment revealed that Arbitrum had the potential to end up like a project who airdropped tokens to early adopters but lacked trading activity. Needless to say, this sounded surprising especially as Abitrum recorded transaction hikes on numerous occasions.
However, the scrutiny of the activities showed that most of the volume existed on Uniswap’s [UNI] Decentralized Exchange (DEX). This, in turn, implies that transactions on Centralized Exchanges (CEXs) have been ravenous. CEX deposit was down 7.29% in the last 24 hours.
Source: Nansen
Furthermore, holders with a large portfolio seem to be the ones engaged in accumulation. But the action could only be because of the perception that ARB had bottomed around the $1 region.
Still, this set of investors did not seem committed to CEX trading activity or storage. According to Lookonchain, a whale recently bought $7.7 million worth of ARB and opted to split it between a DEX and CEX.
A situation like this still reflects the aforementioned observation of notable CEX trading history. However, addresses with 1,000 to 50,000 ARBs have declined accumulation or are following in the path of whales.
Source: Santiment
Small, not mighty
Santiment’s insight interpreted the condition as a pattern of small investors who are not necessarily invested in the ecosystem but are optimistic about a price jump in the future. The report read:
“The beneficiary community consists of small investors exploring the possibilities of platforms. They spend most of their time testing the creation of portfolio accounts and live in LAMBO’s hope.”
As a result of this side-to-side participation, the positive sentiment of the token was hit with a fall. At press time, the metric was down to 49.60. This meant that the feedback circulating on the social network was not splendid.
Is your portfolio green? Check the Arbitrum Profit Calculator
Additionally, the Market Value to Realized Value (MVRV) ratio in the last seven days has also fallen to -14.38%. The metric evaluates the market cap and realized to determine market profitability and fair value.
Since the MVRV ratio was in the negative region, it means that most holders’ portfolios were down. However, it might be too soon to conclude that ARB is currently undervalued, since it’s only less than a month old.
Source: Santiment
