The recent exploit of Rodeo Finance, a DeFi Yield-Farming protocol built on the network, where $1.5 million was lost, raised concerns about the security and stability of the ecosystem. However, despite the hack, ARB price has managed to hold the $1.1 support level since it was confirmed by blockchain intelligence platform Peckshield on July 11. This indicates a degree of confidence among investors in the network’s ability to withstand such incidents.
Arbitrum is among the Ethereum Layer 2 scaling solutions competing for dominance, with Optimism being its main rival. In a recent analysis, Arbitrum, Optimism, Polygon’s ZK rollup, and Binance Smart Chain’s opBNB were evaluated. Among these developments, Arbitrum’s developers have introduced the toolkit for Layer 3 chains, which opens up new opportunities for competition, cheaper transactions, and faster processing.
The Layer 2 solution provided by Arbitrum enhances the speed, flexibility, and scalability of the Ethereum blockchain, making it an attractive option for a wide range of DeFi protocols. Through its Layer 3 chains, Arbitrum is actively working on increasing the customizability of projects, addressing a key challenge faced by Layer 2 protocols.
Despite the negative sentiment surrounding the recent exploit, Arbitrum has seen an influx of new users. The weekly Arbitrum report revealed that the network recently surpassed the significant milestone of 300 million transactions.
This achievement underscores the robust utility and growth experienced by the network, despite its inception during a bear market. Additionally, Arbitrum’s Total Value Locked (TVL) currently stands at $2.177 billion, surpassing both Polygon and rival Optimism in terms of TVL. Furthermore, Arbitrum leads the pack in terms of trading volume, with $373,275,710 recorded in the latest period.
Analyzing the ARB price, it is currently trading at $1.31, above the $1.6 resistance level and the 38.2% Fibonacci retracement level. The recent upward movement of three candles suggests that the $1.34 price zone represents the nearest resistance level that ARB must overcome.
However, if the price retraces to $1.26, it could indicate a clearer downside movement as the bears solidify their position. Traders and investors are advised to closely monitor the price action, as a strong bullish bounce could signal a potential breakthrough of the next Fibonacci levels at $1.36 and $1.48.
In summary, while the recent exploit posed a challenge for Arbitrum, the network has shown resilience and continued growth. With its Layer 2 solutions and ongoing developments, Arbitrum aims to offer improved scalability, customization, and performance. As the network attracts more users and achieves significant milestones, it remains to be seen whether the current positive trend can be sustained in the long term.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
