Arbitrum eyes decentralization with Orbit mainnet, ARB price fails to catch up

Arbitrum network’s program for Layer-3 chains, Orbit, is now mainnet ready. The Arbitrum Foundation’s move is focused on decentralizing the network. Developers are invited to create their Layer-2 and Layer-3 chains on top of Arbitrum One, Nova, Goerli and Sepolia.

ARB price noted a drop of 2% in the past 24 hours. The token’s price failed to recover despite bullish developments in the project’s ecosystem.

Also read: Arbitrum price pulls back from charting 2023 lows as final Security Council voting commences

Arbitrum Foundation announces Orbit is mainnet ready

Arbitrum Foundation’s Orbit Layer-3 application system is now ready for its mainnet. The pace of development for Arbitrum-based projects has been slow, with the launch of Orbit, developers can pick up the pace. 

The core of Arbitrum Orbit embodies the basic modules of Ethereum network’s security and consensus layer by default. Developers can build Layer-3 applications with high Ethereum Virtual Machine (EVM) compatibility and allow projects to customize their gas token. This allows for independence and decentralization of Arbitrum and projects on the chain. 

Projects that choose Orbit are free to select third-party decentralized applications like Celestia. Developers of derivatives trading platforms, and games are looking for independent application chains and Arbitrum Orbit offers them the same.

Arbitrum’s governance token, ARB, is struggling to recover. On-chain metrics like trade volume and daily active addresses, indicate an increase in activity on Arbitrum’s chain, while prices lag behind.

On-chain metrics signal rising activity on ARB

Based on data from crypto intelligence tracker, Santiment, there is a consistent increase in daily active addresses and trade volume in ARB in October. Between September 27 and October 26, the trade volume in ARB increased nearly six times, from 76.66 million to 458.82 million. 

The daily active addresses sustained above the 11,250 level, indicating participation from traders. 

Arbitrum trade volume and daily active addresses as seen on Santiment

Weighted sentiment, a metric that combines the positive and negative commentary and multiplies it by the amount of social volume, signals market participants’ outlook on the asset. For ARB, according to Santiment data, the weighted sentiment is 1.216, non-negative and indicative of a positive outlook among traders. This metric points towards a likely recovery in ARB price.

ARB weighted sentiment vs price 

Arbitrum’s on-chain metrics hint at a price recovery in the asset, however the token is in a downtrend, at the time of writing.

Arbitrum price fails to recover

At the time of writing, ARB price is $0.9211 on Binance. The token yielded 19.62% gains over the past week and posted nearly 2% losses on the day. Altcoin Sherpa, a crypto analyst on X, evaluated the Arbitrum price chart and noted that in the event of ARB price decline, the token could find support at $0.7825, the 78.6% Fibonacci Retracement level. 

ARB/USDT one-day price chart on Binance

ARB price could hit $1.0043, the 61.8% Fibonacci level, if the token resumes its recovery.