Arbitrum has emerged as a leading contender within the Ethereum network’s layer-2 scalability solutions, boasting a significant total value locked (TVL) and notable activity. However, between Sept. 9 and Sept. 11, the price of Arbitrum (ARB) tokens experienced a sharp decline of 14.5%, marking its lowest point in history.
Investors are now eagerly seeking insight into the factors driving this movement and questioning whether Arbitrum still possesses the competitive edge, especially considering that irrespective of the ARB token performance, the network TVL exceeds $1.6 billion.
It is worth noting that the past week has been challenging for most cryptocurrencies, but among Ethereum’s scaling solutions, none experienced a drop exceeding 9%, except for Arbitrum.
ARB governance proposals bring questionable benefits
One potential source of concern stems from the absence of any instances of fraud proof issuance since the launch of the Arbitrum mainnet in August 2021. Offchain Labs confirmed this information to Cointelegraph on Sept. 4. Developers, however, have explained that this situation aligns with the intended operation of the system, as validators…
