Arbitrum is a layer 2 solution on Ethereum chain that uses ARB as its native token. It uses optimistic rollups to achieve its goal of improving speed, scalability and cost-efficiency on Ethereum. In one word it comes to improve Ethereum.

Arbitrum Basic

ARB Analytics

ARB Backers

Vitalik Buterin

Founder

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Corporate Investors

Investors

Arbitrum Advantages

Largest Layer 2 TVL

Arbitrum large TVL even is higher than some layer 1 chain, Currently after Ethereum, Tron, Solana and Binance Chain, it has the 5th rank of largest TVL. Among Layer 2 chains it has the first rank, and the next layer 2 chain belong to Optimism that has about 0.25 TVL of arbitrum.

Active Ecosystem

By having more than 700 high volume protocols and large TVL it has a live and active ecosystem, that grows continuously.

High liquidity

High liquidity in every DEX and CEX, because of it big fame.

Positioning

Nowadays, it is the most famous layer 2 solution on Ethereum.

Arbitrum Disadvantages

Vesting

Actually locked token are not that much, but because of its high marketcap, the market shows a noticeable effect. Until March 2027 each month 0.93% of Max Supply will be unlock, and this has caused cautious behavior of investors. It’s not a disadvantage, in fact it is a risk to be aware of.

Competitors

Competitors are another risk to be aware of, although Arbitrum is in top of layer 2 solutions on Ethereum, but other competitors like Optimism are not weak and must be check periodically.

ARB Tokenomics