Arbitrum’s $ARB Price Prediction: From Airdrop to Moonshot

by BSC News

March 22, 2023


The comparison with Optimism's $OP token suggests a possible price of $0.642 for $ARB, and the project's fully diluted valuation indicates a possible price of $1.22.

A Comparision With Optimism

Arbitrum Foundation announced on March 16 that it would launch DAO governance along with its native token, $ARB. Arbitrum's DAO governance is self-executing, i.e., the DAO's votes will directly affect its on-chain decisions.

The announcement of the launch of $ARB and the DAO governance has sparked a lot of excitement, with many wondering what the coin's price will be in the coming days. So let's find out how $ARB would fare in the days to come and what some analysts think:

The $OP token from Optimism is a good starting place for estimating the value of $ARB, according to some analysts. This is because the layer-2 network also employs optimistic rollups as a technology stack. Optimism announced its token launch in April 2022.

Optimism currently has a market capitalization of $819 million, with each token priced at $2.60. The circulating supply of $OP is 314.844 million.

There will be a total circulation of $10 billion in $ARB, and its circulating supply will reach approximately 1.275 billion following the airdrop on Thursday. 

The price of $ARB may reach $0.642 if the token hits the same valuation as $OP. This is calculated by dividing the OP market cap (~$819 million) by the number of ARB tokens that will be distributed (1.275 billion).

Besides estimating the circulating supply of tokens, analysts are also considering the project's fully diluted valuation (FDV). Given the total supply of 4.29 billion $OP, the fully diluted market cap of $OP tokens is $11.186 billion.

FDV considers tokens that will be unlocked in the future and is calculated by multiplying its market price by the total supply. As a result, the price of the ARB token would be around $1.12. The price is calculated by dividing OP's FDV ($11.223 billion) by the total supply of ARB tokens (10 billion).

Prediction From Analysts

Analyst pons on Twitter predicted that $ARB would reach $1, assuming $OP FDV of $10.5 billion, $ARB circulation at 12%, and $1.6 billion TVL. 

Meanwhile, Silto predicted a price between $0.68 and $1.02 based on an equal market cap or equal FDV. When TVL is taken into account, the numbers may increase to $1.26 and $1.88, respectively. 

In contrast, Sisyphus believes that $ARB will reach $2 and then fall.

According to Olimpio, the price could range from $0.07 to $2.5, depending on the market cap.

Nonetheless, an analyst who goes by the name Salazar believes the $ARB will reach $15.

Arbitrum is one of the leading L2 scaling solutions in the industry. It was the first protocol in the L2 space to introduce self-executing governance. 

As of yet, there are not many uses for $ARB tokens other than governance. As a result, $ARB's future depends on the Arbitrum Foundation's ability to increase the utility in the real world.

What is Arbitrum:

Arbitrum is an Ethereum layer-2 network that enables developers to build and deploy highly scalable smart contracts at low cost. You can use Arbitrum chains to do all the things you do on Ethereum — use Web3 apps, deploy smart contracts, etc., but your transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic roll-up protocol that inherits Ethereum-level security.

Learn more about Arbitrum:

Website | Docs | Twitter | Blog |

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