News: during the last month, the values of Arbitrum and Optimism tokens have experienced significant increases, reaching near all-time highs.
Today, the Arbitrum token reached its peak value of $1.83, recording a 60% increase in the last month, although it subsequently experienced a slight downward correction. Let’s see all the details below.
Latest news on the Arbitrum and Optimism phenomenon: unprecedented trading levels
The crypto market has started the new year with strong growth, highlighted by the price of $45,000 being surpassed by Bitcoin for the first time since April 2022.
Investors, in the meantime, are waiting for a potential approval of a Bitcoin spot exchange-traded fund (ETF) in the United States.
Parallelly, the tokens of two important Layer 2 scalability solutions, namely Arbitrum (ARB) and Optimism (OP), have recorded significant increases in prices in the last month, both traded near their all-time highs.
Today, the Arbitrum token has gained 13%, reaching a record of $1.83, marking a 60% increase in the last month. Currently, it is being traded at around $1.78, with a market capitalization of $2.3 billion.
The OP token, native to the OP mainnet (previously known as Optimism), instead reached its all-time high of $4.10 last week.
Now, it is maintaining around this level, with a value of $4.05 during today’s Asian trading hours and a price of $3.87 at 8:50 ET, according to data from The Block.
Optimism and Arbitrum: governing Layer 2 networks with key tokens
We remind you that Optimism and Arbitrum, as the first two Layer 2 solutions for adoption, leverage Optimistic rollup technologies. These allow users to process transactions outside the main Ethereum blockchain more efficiently.
The ARB and OP tokens are fundamental for the governance of these networks. In the last quarter, both networks have recorded an increase in transaction volume.
Since Q4 2023, daily transactions on Arbitrum have grown by 38%, going from 670,000 to 926,000. During the same period, OP Mainnet has seen a 20% increase in daily transactions, rising from 354,000 to 431,000.
The total value locked on Arbitrum remains the highest among all Layer 2 solutions, amounting to $2.57 billion. The second largest Optimistic rollup, the OP mainnet, holds over $937 million in assets.
Mark Yusko predicts a powerful 2024 for the crypto sector
Mark Yusko, the founder and CEO of Morgan Creek Capital, expresses a strong optimism regarding the future of cryptocurrencies in 2024.
In a recent interview with The Dales Report, Yusko predicted that 2024 will be an “incredibly powerful” year for cryptocurrencies, supported by a favorable convergence of several factors.
“What we will have in 2024 is this celestial alignment of all the elements, of all the cycles. We have the four-year cycle of Bitcoin, right? The halving will happen in April or early May, depending on the blocks. But this is certain.”
Yusko emphasizes the imminent unleashing of a new wave of liquidity with the approval of the Exchange Traded Fund (ETF) for Bitcoin.
Furthermore, it observes an economic cycle in which the slowed down trend of the economy could push the Federal Reserve to return to accommodating policies, resulting in further depreciation of the dollar.
According to Yusko, this could raise the price of Bitcoin when evaluated in dollars.
The hedge fund veteran also suggests that the cryptocurrency industry could benefit from an influx of new talent, sparked by a “technological wave” in the sector.
“We have witnessed a technological wave in which 650,000 people have been laid off by Big Tech. It’s a significant number. We discover that some of them, lacking sufficient financial resources, do not intend to abandon the world of work. Some of them are starting new companies… We discover that human creativity is the most powerful force in the universe.”