Popular Layer 2 Solution Arbitrum Launches Highly Anticipated Airdrop in ETH/USD Pair

With Ethereum's sluggish transaction speeds and occasionally high gas-fees, the world of "layer 2" solutions to improve the usability of the Ethereum network has been expanding rapidly. Multiple protocols are competing to be the one that can make Ethereum more usable and generate substantial profits. And while Arbitrum has always been a contender for the top spot, the introduction of its native token may strengthen its position.

The wait is finally over

ARB, the governance token of Arbitrum DAO, has been airdropped to the platform's early adopters. In the days leading up to the airdrop, the network's daily transaction volume reached an all-time high of over 1,3 million. Out of a total of 10 billion ARB tokens, 1.16 billion were distributed as part of the airdrop, with the majority of tokens (42%) being reserved for the Arbitrum Foundation for network improvement. Some DAOs that utilise Arbitrum can also claim tokens from a dedicated pool. Major cryptocurrency exchanges such as Coinbase and Binance have already announced that the token will soon be supported for trading.

Currently, the total locked value of Arbitrum is approximately $2 billion, and its most popular project is the decentralised exchange (DEX) DMX. It also hosts the top DeFi protocols on the Ethereum network, Uniswap and Sushiswap.

What does this imply about Arbitrum?

The airdrop could help further solidify its dominance in the layer 2 solution market. Other Ethereum layer 2 competitors, such as Optimism, have already released tokens, but Arbiturm maintains a commanding market share of approximately 55%. If considered a 'true' layer 2, Polygon would be the leader in terms of value locked; however, it is typically considered separately because, unlike most other layer 2s, it employs a separate blockchain.

The price of ARB token dropped sharply after the airdrop (as is the case with most cryptocurrencies, as recipients immediately sold their tokens), but it is a price to closely monitor in the coming months.