ARB, the native token of Arbitrum, Ethereum’s Layer 2 solution, is down 68% from its January 2024 peak.

There is some good news though: while ARB holders are “suffering” in the face of an ongoing bear market, positive developments on the chain are revealing a platform that is not only the largest in terms of total value locked (TVL), but also full of potential.

Over 48% of Ethereum bridge assets go to Arbitrum

Moving on to X, one analyst notes an augment in user activity on the Arbitrum platform and its leading position in terms of many key performance indicators (KPIs).

Importantly, the analyst noted that while there are other Layer 2 Ethereum solutions to choose from, including Base – backed by one of the world’s largest exchanges, Coinbase, and Optimism, over 48% of all assets transferred from the mainnet go to Arbitrum.

The fact that users are choosing Arbitrum over Base or other competitors is a huge boost in confidence. It also indicates its technical ability to handle the scaling challenges plaguing the mainnet.

In addition to this dominance, the analyst, citing Token Terminal data, also notes that Arbitrum, as mentioned, reigns supreme in terms of TVL. According to the on-chain asset flow from the blockchain analytics platform, Aave, a lending and credit platform, is the main contributor.

At the same time, Arbitrum is the most vigorous network, looking at the number of vigorous addresses per day. Assessing the level of activity, the analyst notes that Arbitrum is even busier than the main network.

Interestingly, while activity may be a factor to consider, Arbitrum, as the analyst also said, leads other Layer 2s in terms of unique token holders. This indicates that Layer 2s also lead in terms of depth and breadth, indicating high engagement.

Will ARB rise after 68% decline in 7 months?

Given these impressive on-chain stats, the question remains when ARB will recover. The token is down 68% in seven months. The token remains under massive selling pressure and is a shadow of its former self.

As Ethereum recovers, ARB could follow suit. Platform-led initiatives will also support the token. For example, the team recently shot Gaming Catalyst Program (GCP) aimed at accelerating the build and adoption of GameFi platforms in its ecosystem.

Voting is ongoing and will conclude on August 1, when three candidates will be selected to form the GCP Council. The Council will be a decentralized autonomous organization (DAO) overseeing GCP functions.