Arbitrum price rallies 22% as DAO prepares to vote on EVM Shanghai support proposal

Arbitrum price fell slightly behind Optimism on Friday to become the largest gainer of the day. Nevertheless, ARB holders managed to chart considerable profits while the developers are also witnessing bullishness in their ways.

Arbitrum to align itself with Ethereum

The Shanghai hard fork brought multiple new features to the network, but it also changed the Ethereum Virtual Machine (EVM) Compatibility standards. As a result, all the EVM-compatible chains are required to align with the Shanghai hard fork improvements. Joining this list is Arbitrum, which is set to undergo the voting for this upgrade on Sunday.

The proposed AIP titled ArbOS Version 11 will introduce a number of improvements to Arbitrum chains. This includes support for the EVM Shanghai upgrade as well as bug fixes for the network.

Arbitrum is the second major DeFi chain to make this move after earlier this week, Binance Smart Chain (BSC) also underwent a similar upgrade. The BSC test net witnessed the Kepler hard fork going live on the chain, which is scheduled to move on to the mainnet by the end of January 2024.

Arbitrum price reacts positively

Arbitrum price shot up by more than 22% in the last 24 hours amid the aforementioned proposal being released by the development team. The rally was not the result of the proposal but of the bullishness in the DeFi market which also resulted in the 37% increase in Optimism price.

However, at the time of writing, ARB corrected by nearly 5%, bringing the price down to $1.350 today. This is expected from the digital asset since it registered stellar gains in the past 24 hours.

Some further decline can be observed as the market would need some time to cool down, which is generally met with corrections.

ARB/USD 1-day chart

But Arbitrum price will likely manage to sustain the gains it noted in the past day as it would remain above the $1.30 mark, losing which would invalidate the bearish thesis and push ARB towards $1.500.