- ARB’s daily active addresses increased, but the number of transactions decreased.
- Arbitrum is down over 4% in the last 24 hours and indicators have been bearish.
Arbitrums [ARB] Its networking business has been growing for quite some time, allowing it to outpace its biggest competitor. While that was happening, the token’s price action turned bearish over the past 24 hours, which looked concerning.
Ttherefore, AMBCrypto delved deeper into Arbitrum’s statistics to better understand its state.
Arbiturn has an edge on optimism
Nansen posted one tweet on February 16 highlighting several interesting facts regarding Arbitrum.
According to the tweet, the Arbitrum was exaggerated Optimism [OP], one of its top competitors, in daily operations. While ARB’s daily number of transactions was between 600,000 and 900,000 per day, OP’s value fluctuated between 300,000 and 400,000, which was almost half of ARB’s.
This clearly indicated how the adoption and use of ARB is on the rise.
To check whether the L2’s network activity was actually increasing, AMBCrypto looked at Artemis’ facts. Our analysis showed that ARB’s daily active addresses rose again after a dip on February 9.
It was surprising to see that despite the recent increase in active addresses, the number of daily transactions on the L2 has fallen sharply over the past 30 days.
Source: Artemis
Interestingly, while the blockchain’s daily transactions were down, things on the captured value front looked optimistic. Both L2 fees and revenues have increased in the recent past, which has been good news for the overall health of the L2.
ARB is undervalued
In addition to networking activity, Nansen’s tweet also mentioned that ARB was undervalued. According to the tweet, Arbitrum is fundamentally valued at ~2x lower P/S (fully diluted market cap/annualized) and P/F (fully diluted market cap/annualized) compared to Optimism.
This hinted that the token could be somewhat undervalued.
Therefore, to check whether investors can expect an upward trend in price, AMBCrypto looked at ARB’s daily chart. We found that the Chaikin Money Flow (CMF) registered a slight increase, which was a bullish signal. However, the remaining indicators were bearish.
Read Arbitrums [ARB] Price prediction 2024-25
For example, the MACD showed the possibility of a bearish crossover. The Relative Strength Index (RSI) also recorded a decline, indicating a possible price decline.
In fact, according to CoinMarketCapARB had already fallen by more than 4% in the past 24 hours. At the time of writing, it was trading at $1.99 with a market cap of over $2.5 billion.
Source: TradingView