Arbitrum
ARB
$0.71

Sector

Layer 2

Exchange Debut

2023-03-23

Market Cap

2,308,536,675

Maxim Supply

10,000,000,000

Circulating Supply

3,231,588,116

Circ. Supply(%)

32.32%
arbitrum

Arbitrum

ARB

Price

$0.71

Market Cap

Sector

Exchange Debut

2,308,536,675
2023-03-23

Volume 24h

High 24h

Low 24h

125421157
0.709187989275
0.692066511552

Change 24h

Change 7d

Change 30d

1.2017
4.1471
-24.8457

Maxim supply

Circulating supply

Circulating supply(%)

10,000,000,000
3,231,588,116
32.32%

The opinion of artificial intelligence (AI), based on the fundamental analysis of the Arbitrum cryptocurrency:

Deepening the fundamental analysis of the Arbitrum cryptocurrency, we face a combination of elements indicating a solid project, with a series of strengths, but also with several areas for improvement. With a final score of 8.04 out of 10 in the multi-criteria analysis, we can deduce that Arbitrum offers an attractive investment opportunity in the crypto world.

In the „Product and Utility” category, Arbitrum enjoys an impressive score of 9.3 out of 10. By its nature, as a Layer 2 scalability solution for Ethereum, the product brings undeniable value to the ecosystem. Moreover, the utility of tokens within this ecosystem is at a high level, which improves the prospect of maintaining and increasing their value in the long term.

Regarding „Social and Media”, a fundamental analysis of the Arbitrum cryptocurrency reveals a good score of 7.5 out of 10. The project’s ability to attract followers on social media pages, as well as its presence in the media, are very strong points. However, there is also room for improvement, especially when it comes to community activity on social media pages.

For „Partners and Investors”, Arbitrum records a high score of 9.15 out of 10, underscoring the importance and quality of the partners it enjoys, as well as the capacity of its investors. This contributes significantly to the confidence in the future of the project.

In the „Token Economy”, Arbitrum has a weaker performance with a score of 4.825 out of 10. Here we observe a few potential problems, including the inflationary nature of the project and the centralization of the monetary mass. These aspects should be considered by any potential investor, as they can have a significant impact on the performance of the investment in the long run.

Fundamental analysis of the Arbitrum cryptocurrency – The final conclusion

Concluding the fundamental analysis of the Arbitrum cryptocurrency, we can say that it represents an interesting investment opportunity with a strong final score of 8.04 out of 10. Despite a few areas for improvement, especially at the level of the token economy, the project’s strengths, such as the product and its utility, partners and investors, as well as presence in social media, position it as a valuable investment option in the crypto space.

Arbitrum is a Layer 2 scalability solution for Ethereum, developed by Offchain Labs. The primary goal of the project is to significantly increase the speed and reduce the cost of transactions on the Ethereum network.

Arbitrum achieves this through a technique known as „rollup”. With this technique, computations are processed off-chain while keeping the data on-chain. It separates the computation and storage layers of Ethereum, which allows for increased efficiency.

In the Arbitrum system, validators submit proofs of execution to the Ethereum network. These proofs can be challenged by other validators if they believe there’s a mistake or malicious action. This challenge system helps to ensure the security and correctness of the computations.

The protocol

This protocol is designed to be fully compatible with Ethereum, meaning that existing Ethereum contracts can be deployed on Arbitrum without any modifications. Additionally, Arbitrum is designed to be secure under any circumstances, assuming at least one honest validator exists.

Arbitrum Rollup, the main product of Offchain Labs, creates a protocol that optimizes scalability by batching multiple smart contract transactions into a single, solvable dispute. Each batch of transactions is submitted as a single „rollup” block to the Ethereum network. The goal of this process is to alleviate the congestion on Ethereum’s network by reducing the number of transactions that need to be processed directly on the Ethereum mainnet. Furthermore, it allows developers to work with a system that behaves like Ethereum, but with much higher capacity and lower transaction fees.

Another notable feature of Arbitrum is its Interoperability.

While some Layer 2 solutions create siloed ecosystems that are disconnected from the wider Ethereum network, Arbitrum maintains full compatibility and interoperability with Ethereum.

It supports all Ethereum developer tooling out of the box, which allows developers to port their decentralized applications (dApps) to Arbitrum without needing to learn new tools or languages. It also enables seamless asset transfers between Ethereum and Arbitrum, offering users and developers an efficient and fluid Layer 2 experience.

This interoperability is critical for maintaining the open and synergistic nature of the Ethereum ecosystem, and is a key selling point for Arbitrum.

fundamental-analysis-of-the-arbitrum-cryptocurrency/

Arbitrum - ARB performance

GENERAL CRITERIA:

Score

SOCIAL & MASS MEDIA
0
AUDIT & SECURITY
0
TOKENOMICS
0
ECOSYSTEM DEVELOPMENT
0
TEAM & DEVELOPERS
0
PRODUCT & UTILITY
0
PARTNERS & INVESTORS
0
Content description – Go to Metholodogy

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

Go to Methodology

Content description

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

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