- TreasureDAO has introduced a proposal to migrate its Web3 gaming ecosystem from Arbitrum to ZKsync.
- Arbitrum dApp volumes have dropped by 33% in the last 24 hours.
As a seasoned crypto investor who’s been through multiple bull and bear markets, I find TreasureDAO’s decision to migrate from Arbitrum intriguing. It seems they’ve outgrown their current ecosystem, which is understandable given their dominance on the platform. The drop in dApp volumes on Arbitrum is concerning, but it’s not uncommon in this dynamic market.
TreasureDAO has revealed intentions to transfer its Web3 gaming platform away from Arbitrum [ARB], instead opting for ZKsync as it aligns more closely with their gaming requirements, as indicated in a recent voting proposition.
According to the information provided, it appears that the majority of liquidity within the Arbitrum ecosystem originates from Decentralized Finance (DeFi), rather than gaming. Furthermore, the implementation of Arbitrum’s program for supporting Web3 games is happening gradually, not at a rapid pace.
The DAO said,
The Arbitrum Gaming Catalyst Program (GCP) hasn’t moved as quickly as we expected, failing to kickstart and nurture gaming development on the Arbitrum network.
The gaming protocol “Treasure” on Arbitrum holds the highest value, with a total locked value of approximately $6.42 million per DappRadar. This is nearly thrice as much as the second-largest gaming initiative on this layer-2 network.
The proposal has coincided with a significant drop in dApp activity on Arbitrum. DappRadar shows that in the last 24 hours, volumes have dropped by 33% to $1.08 billion.
Arbitrum price struggles
At the moment, the ARB price is experiencing some resistance following a 0.5% drop, currently standing at $0.517. This downward trend can be attributed to volatile price fluctuations observed throughout the wider market, suggesting that traders are uncertain.
Arbitrum’s trades were happening inside a channel that typically indicates a strong bullish trend. But, the upward movement started to wane as Arbitrum dipped beneath the middle line of this channel.
As a researcher, I’m keeping an eye on the price action of ARB. If the price falls beneath the established channel and violates the crucial support level at $0.508, my bullish outlook may need to be reconsidered.
This extended period represents a key support point, as every time it’s been tested, Advanced Renal Bond (ARB) has seen substantial drops.
At the current moment, the Situational Rhythm of Strength (similar to RSI) stands at 40, suggesting that sellers are in control. Additionally, the Vibrant Oscillator (like AO) is displaying reddish bars, hinting at a possible price drop ahead.
As an analyst, I haven’t seen bears asserting dominance over the market yet, given that the Stochastic RSI line remains above its signal line.
As a researcher examining the ARB stock, I find that a potential bullish trend could be established only if ARB manages to surpass and sustain trading above the $0.55 mark – effectively breaking through its upper trendline. This bullish breakout would counter the bearish thesis currently in play.
An increase in network activity may foster a bullish comeback. Lately, Ethereum co-creator Vitalik Buterin has commended Arbitrum for leading other layer 2 solutions in maturity.
Read Arbitrum’s [ARB] Price Prediction 2024–2025
Data from L2Beat showed that Arbitrum was the largest layer-2 network by TVL.
In the past day, it hasn’t matched the performance of its major rivals, Optimism (OP) and Base, as their Total Value Locked (TVL) grew by 3% and 4% respectively.
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2024-09-14 04:08