Arbitrum price stagnancy leads to loss of traction despite unique addresses doubling in Q2 2023
- Arbitrum price has been stuck under the $1.42 resistance level for four months now.
- Over the past three months, Arbitrum has seen growth in unique addresses on the L2, hitting 9.5 million, doubling in Q2.
- The altcoin is still failing to draw and sustain investors as the lack of price increase is off-putting when compared to its competitors.
Arbitrum price has failed to invigorate investors' interest, but the base L2 chain is consistently drawing users to it. Nevertheless, the bearish market conditions have been rather discouraging, resulting in users pulling their money from Arbitrum-based decentralized applications (Dapps), resulting in a decline in value of the chain.
Arbitrum price could see more drawdown
Arbitrum price has been stuck within a range for nearly four months, with the only exception being a crash around mid-June. Bouncing within $1.423 and $1.057, ARB has been losing the interest of investors and the same is reflected in the growth of the chain.
Network growth which basically computes the rate at which the new addresses are formed on the chain, has seen a drastic decline over the past couple of weeks. The metric is a measure of the traction that the project possesses, and throughout Q2 2023, the network growth has plunged by 84%.
 [19.24.33, 08 Aug, 2023]-638271094699029525.png)
Arbitrum network growth
Interestingly, in the same duration, the layer-2 chain has observed growth in the user base. The unique addresses recorded on the chain have nearly doubled in comparison to Q1 this year, peaking at 9.5 million users come August.
Arbitrum unique users
However, their investment in Dapps does not exhibit similar enthusiasm as, on the contrary, the total value locked on the chain has consistently fallen. Since April this year, the TVL has declined from $2.9 billion to $2.45 billion at the time of writing, marking an 18% plunge.
Arbitrum TVL
Arbitrum still stands as the biggest L2 chain in the world, and this title will remain unchallenged, but its token's value is vulnerable to facing further bearishness. According to FXStreet's analyst Akash Girimath, ARB is likely to observe a downswing to $1.053, potentially even testing the lows of $0.967.
ARB/USDT 4-hour chart
However, if Arbitrum price stays above $1.137, the bearish waves could change to bullish and push the altcoin to $1.312.
Read more - MATIC, ENS, ARB look ready to plummet as traders lose interest on CEX tokens
Like this article? Help us with some feedback by answering this survey:
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
