ETH/USD: Popular Layer 2 Solution Arbitrum Launches Highly Anticipated Airdrop
- Arbitrum has launched its ARB token which was much anticipated by users of the platform.
- Arbitrum has the dominant market share of Ethereum layer 2 solution market at 55%
- The ARB token will be listed by major crypto exchanges including Binance and Coinbase.
With Ethereum’s slow transaction speeds and sometimes hefty gas-fees, the world of “layer 2” solutions to improve the usability of the Ethereum network has been rapidly growing. Several different protocols are competing to be the one which can make Ethereum more usable and make serious profits doing so. And while Arbitrum has always been a contender for the number 1 spot, the arrival of its native token might make its position more secure.
The wait is over
The governance token of Arbitrum DAO, ARB, has now been airdropped to early adopters of the platform. The excitement caused the network’s daily transaction count to reach an all-time high of over 1.3m in the run-up to the airdrop. 1.16bn ARB tokens have been released as part of the airdrop out of 10bn tokens in existence, and the majority of the tokens (~42%) will be reserved for the Arbitrum Foundation for the purpose of network improvement. Some DAOs using Arbitrum are also able to claim tokens from a dedicated pool. Major crypto exchanges like Coinbase and Binance have already announced they will support trading of the token soon.
Currently, Arbitrum has a total value locked of around $2bn, and its most popular project is the decentralized exchange (DEX) DMX. It also hosts both Uniswap and Sushiswap – some of the top DeFi protocols on the Ethereum network.
What does it mean for Arbitrum?
The airdrop could help solidify its dominance in the layer 2 solution space even more firmly. Other Ethereum layer 2 competitors like Optimism have already released tokens, although Arbiturm is still firmly in the lead with a roughly 55% market share. If considered a ‘true' layer 2, Polygon would be in the lead by value locked – however it is usually considered separately as it utilizes a separate blockchain unlike most other layer 2s.
The price of ARB token fell sharply after the airdrop (as is the case with most due to recipients immediately selling their tokens), but its price is definitely one to keep an eye on over the coming months.