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Was Dencun "Sell the News"? Arbitrum Price Prediction 2024, 2025, 2030, 2034
Author: Alexander

Contents

A week after the Dencun upgrade to the Ethereum network that was supposed to decrease transaction fees, especially on layer-2 chains, Arbitrum (ARB) is in the red. It is not rare for positive updates and announcements to become the actionable event in the “buy the rumor, sell the news” strategy. Will the ARB price rise in the short term? Does it have what it takes to secure its leading position among the L2 tokens? Dive into this article to learn the analytics and see the Arbitrum price prediction for 2024 and beyond.

Arbitrum (ARB) Price Forecast 2024–2034

arbitrum price forecast 2024-2034

What are the Arbitrum L2 and ARB?

arbitrum logo

Arbitrum is a layer-2 scaling solution for the Ethereum blockchain. It aims to improve the scalability and lower Ethereum’s transaction costs by processing them off-chain and then submitting proofs of validity to the Ethereum mainnet. Arbitrum uses a technology called optimistic rollups to achieve this while still maintaining the security and decentralization of the Ethereum network.

At the time of writing, Arbitrum is the most used Ethereum rollup-based L2 with over $3B of total value locked (TVL) and 575 protocols built on it. It translates to 45.53% TVL dominance in this category.

Although the Arbitrum mainnet was launched on August 31, 2021, it did not have a native token until March 23, 2023. The ARB tokens were airdropped to Arbitrum users, builders, and decentralized autonomous organizations (DAOs). This portion took up 12.75% of the 10B total supply. The ones that weren’t (the remaining 87.25%) are in the Arbitrum DAO treasury (42.78%) or were given to the Offchain Labs team and advisors and private investors. These tokens are subject to periodic unlocks.

The ARB tokens are primarily governance tokens. They are not gas tokens so you don’t need ARB to use the Arbitrum network and protocols built on it. If you have ARB, you can stake them or use them to vote for various proposals. For example, only the Arbitrum DAO can decide how to use funds from the treasury after putting forward a proposal for ARB holders to vote.

Arbitrum Price History

ARB Price in 2023

arbitrum price 2023
Source: CoinMarketCap

Tokens that are initially distributed in an airdrop often start with a drop down in price before finding a fair value. ARB also experienced significant volatility in price action in the first weeks. However, the opposite of the usual decline happened after the community passed one of the first improvement proposals. The ARB price rose from $1.19 to $1.63.

Soon after that, the Arbitrum token pulled back and even declined below the opening price. In June, a sequencer bug disrupted the relay of transactions to Ethereum, causing the price to drop even further to $0.95. From there, though, it quickly recovered.

By August, the ARB token price was back on a downtrend. It bottomed out by September and started another recovery only in late October. Then, in November, the community voted to activate ARB staking, causing the token price to surge. Almost at the end of the year, Ethereum started to pick up the pace, further helping the L2 tokens by proxy. ARB was once again trading near its all-time highs at the end of 2023.

ARB Price in 2024

arbitrum price 2024
Source: CoinMarketCap

The rally continued in 2024, bringing Arbitrum to its current all-time high of $2.40 on January 12. From there on, it saw a correction as expected. Nevertheless, even with price fluctuations in the short term, the prevailing trend for the time being is to the upside.

At the time of writing, ARB’s price is $1.76. The cryptocurrency ranks 27th by market capitalization according to CoinMarketCap.

What Affects Arbitrum’s Price?

Relationship with Ethereum

For the foreseeable future, it will be hard to imagine Arbitrum without Ethereum. As we have seen, when the Ethereum price surges, Arbitrum and other L2s enjoy the investor confidence boost as well. But how close is this relationship in reality?

arbitrum price vs eth price
Source: CoinMarketCap

If we compare ARB and ETH prices, we can see that although the charts show a close relationship, it is not 1:1. Nevertheless, we can reasonably expect them to move in sync most of the time.

The most recent Ethereum update, the Dencun hard fork, has been widely covered by the crypto media. On the one hand, this is the first step towards introducing scaling at the base layer, which can make L2s obsolete in the long run. On the other hand, the blob introduction and updates rolled out by the L2 teams are going to help reduce transaction fees in the short run.

DAO Governance

The example of AIP-1.1 and AIP-1.2 clearly shows how the governance and proposal progress can affect the price of ARB. It is by design; ARB is primarily a governance token to be used for voting. The idea behind the value and pricing of these tokens is that the higher the stakes for a proposal, the higher the demand to buy this token and cast the vote.

Admittedly, this only works if the token supply is not too concentrated in the few hands who can vote as they please. In the case of Arbitrum, the situation is the following, according to IntoTheBlock: 57.13% of the supply is controlled by whales (holders of >1% of the supply), including the treasury.

Tokenomics

A significant portion of the ARB supply is currently locked but gradually released into circulation. However, this creates selling pressure because large amounts of tokens are sold at once. Even if it does not end up in a dump, this increases the circulating supply and dilutes the value of the tokens already in circulation.

At least, this is a logical conclusion from this situation. But how does it play out in practice? According to the platform Token Unlock, it depends on the recipients of the unlocked tokens but more often than not, the prices rise. Particularly, unlocking tokens of private investors showed a correlation with the highest average price increase, up to 34% a week after the event.

Arbitrum Price Analysis & Forecast

arbitrum price analysis
Source: TradingView

The recent ARB price correction that followed the Dencun update and a $2 billion token unlock almost brought the relative strength index of Arbitrum to the undervalued zone. More signs point to a buying opportunity coming than a prolonged correction.

If the buyers take this opportunity, ARB can recover to $2 soon. However, a bearish scenario cannot be completely ruled out, so we could see ARB accumulate in the current range or test the $1.38 support level.

Arbitrum Price Prediction 2024

arbitrum arb price prediction 2024
Source: TheNewsCrypto

Using technical analysis, TheNewsCrypto recognizes a descending channel on the Arbitrum price chart. This pattern usually resolves in an upside move above the upper bound, so the analysts expect a breakout to result in ARB trading for $3. If the pattern is not valid, and there is always a chance, Arbitrum can enter accumulation or descend to the support level of $1.5679.

The CryptoSlate staff feels bearish about Arbitrum in the short term, pointing to the technical analysis. The suspect is familiar: the cliff unlock event. Prolonged selling pressure may bring the ARB price to the support level of $1.30, and a psychological level of $1 is not too far away from there. And yet, should the situation reverse, bulls can take the Arbitrum price to $1.7 and $1.9. If there is enough buying momentum, ARB prices may as well reach $3 soon.

The Arbitrum price prediction from YouTube by Scrembo Paul is also cautious and bearish. The Arbitrum price is expected to run into an accumulation zone near $1.7, and the takeaway from this scenario is twofold. On the one hand, the accumulation may not prove to be the buying opportunity bulls may hope to see and see ARB go further down to crucial support of $1.5. On the other hand, if the accumulation resolves to the upside, Arbitrum can easily settle in the golden pocket in the $2.09–2.12 range and shoot for a new price record.

Arbitrum Price Prediction 2025

In March 2025, exactly a year from now, Arbitrum can be trading for $4.49, as CoinCheckup forecasts. A similar projection by CoinCodex gives a near-identical target, $4.48, even though it uses a different method. Their forecast for the average trading price range for ARB in 2025 is between $1.68 and $7.95.

While Elliott Lee of Techopedia believes that the Bitcoin bull run will contribute to the ARB price increase in 2025, the ecosystem development will also play its part. Their team’s estimated average price of Arbitrum token is $6 with a potential minimum price of $4.

Arbitrum (ARB) Price Prediction 2026–2029

If you aim to hold ARB for over a year and want to know the Arbitrum price from 2026 to 2029, here are some estimates from different sources. There is no strong consensus on the forecast, although all of the predictions we reviewed are bullish.

Year Finance Shots Coin Edition AMB Crypto
2026 $7.36–9.76 $6–10 $16.32–19.59
2027 $10.62–13.11 $8.9–11.5 $34.29–41.15
2028 $14.35–17.76 $10–14.5 $72.04–86.45
2029 $18.21–21.44 $19–30 $151.35–181.62

Arbitrum Price Prediction 2030, 2034

Long-term Arbitrum price predictions, like with any other asset, tend to be unreliable guesswork. Especially when the asset has been on the market for only a year. Nonetheless, here are some estimates.

For one, Coin Price Forecast pins a potential Arbitrum price in 2030 between $10.06 at the middle point of the year and $9.36 at its end. As for 2034, at the same points, ARB is forecast to trade for $12.24 and $11.70.

Coincu has an even more bullish Arbitrum price prediction: they claim that in 2030, it will be trading in the range of $39.93–54.90. As for 2034, ten years from now, the ARB price range will have moved to $24.95–59.89.

Finally, BeInCrypto’s Arbitrum price prediction represents the middle ground between the forecasts above. In 2030, ARB’s price has the potential to reach $19.03 and peak at $24.41. In ten years, its value will increase to anywhere between $59.77 and $76.63.

How to Buy Arbitrum (ARB) on ChangeHero?

The Arbitrum crypto is traded on the largest crypto exchanges but choosing the right one can be a hassle. Use ChangeHero to exchange ARB at the best current rate in a few easy steps:

  1. Choose the currencies on the home page, amounts, and the type of exchange. Provide your wallet address in the next step, and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send a single transaction in the cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
  4. All done? Now we are doing all the work: confirming the incoming transaction and performing the exchange as soon as it arrives;
  5. Once the exchange has been processed, your ARB is immediately on its way to your wallet.

Customer support will help you with any questions and troubles round the clock in the chat on the website or through the email: [email protected].

Conclusion

Arbitrum does not seem to be held back by its utility — quite the opposite. Even though it is a relatively new asset with exactly a year of history, it has shown that Arbitrum can stand by its value.

How did you like our Arbitrum price prediction? Let us know on X, Facebook, Reddit, and Telegram. Find even more educational and informative articles on the ChangeHero blog.


Frequently Asked Questions

Is Arbitrum a good buy? Is ARB a good investment? Does Arbitrum have a future?

For the short term, the outlook in the crypto market for Arbitrum seems to be predominantly bearish, which can turn into a buying opportunity. For the longer term, though, Arbitrum is shaping up to be a decent crypto asset with a clear use case and strong fundamentals.

What is the price prediction for Arbitrum in 2025?

Depending on the source and method, a 2025 Arbitrum price prediction estimates the ARB price to be between $1.68 and $7.59.

Can Arbitrum reach 5 dollars? Can Arbitrum reach $100? How high could Arbitrum go?

Some methods used to forecast Arbitrum price show that ARB has the potential to exceed $5 and even $100 in a few years. The highest Arbitrum price prediction for 2029 has the maximum price of Arbitrum token be $181.62.

What is the price prediction for the Arbitrum token in 2030?

Arbitrum’s crypto token can be trading for between $9.36 and $54.90 in 2030, according to various sources.

Disclaimer

This article is not a piece of financial or investment advice. No price predictions are guaranteed to provide exact information on the future price. When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investing in cryptocurrencies only after careful consideration and analysis and at your own risk.

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