97% of Arbitrum Holders in Loss: Is Arbitrum’s Future Dark?

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The L2 ecosystem of the Ethereum blockchain is growing every day. However, Arbitrum, which had garnered hype, has not been able to sustain it. Among Ethereum’s layer 2 solutions, Arbitrum has emerged as the least performing L2.

ARB Token going down

According to Messari’s data, Arbitrum has proven to be a loss-making deal for investors. Since its token launch in January 2023, it has been on a continuous decline. From October 23 to January 24, there were only three months during which the ARB token saw a slight rise. For the rest of the time, the ARB token has only disappointed its investors.

Source : TradingView

The Scary Data

Data from IntoTheBlock shows that only 0.02% of holders are in profit, 3% are neither in profit nor in loss, while a significant 97% are in loss. More than 1.15 million addresses are bearing this loss burden.

Source : IntoTheBlock

Additionally, only 29% of holders have held ARB for more than a year, while 60% have held it for more than a month, and 11% have held it for less than a month. Messari’s data confirms that 97% of holders are experiencing losses.

Source : IntoTheBlock

While Ethereum’s L2 ecosystem has seen better days compared to Arbitrum, it has never been fortunate. And the total volume of Arbitrum is also falling critically.

Source : Messari

When its token launched in 2023, there was a high level of activity surrounding it. Arbitrum’s airdrop attracted investor interest. Furthermore, several DApps were launched on Arbitrum. In January 2024, Arbitrum set its all-time high record at $2.39. Since then, the ARB token has fallen by almost 76%.

Source : IntoTheBlock

Looking at Glassnode’s data, it is evident that there has been an overall decline in ARB token trading volume in the past 24 hours.

Source : Glassnode

The most significant decline was observed in the ARB/USDC pair on Bybit, which fell by 75.49%. However, there has also been an increase in OI volume. Looking at this, it seems that traders are confident that the price of ARB will rise.