Arbitrum Token Price and Usage Plummet Amid Declining Confidence and Competition from Other Layer 2s
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Arbitrum (ARB) token price fell 14.5% to an all-time low amid declining network usage and activity.
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Total value locked (TVL) on Arbitrum has dropped 25% in the past two months to $1.67 billion, indicating fading investor confidence.
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Active addresses are down across top DApps like Uniswap and GMX, suggesting reduced demand and adoption of Arbitrum.
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Proposed governance changes like token inflation and staking have not resonated well with investors and may have contributed to the price drop.
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Competing layer 2 solutions like zkSync and Base Layer may be siphoning activity away from Arbitrum.