- Arbitrum prepares for Dencun upgrade.
- ARB is close to entering into the $2 price zone.
Arbitrum [ARB] has recently declared its preparations for the Dencum upgrade. As a leading Ethereum [ETH] Layer 2 (L2), what is the current condition of the network?
Arbitrum gears up for Dencun
On 29th February, Arbitrum announced on X (formerly Twitter) that ArbOS 20 Atlas, introducing the Dencun upgrade to Arbitrum chains, had been activated on Arbitrum Sepolia.
This signifies the L2 network’s preparation to implement the latest Ethereum upgrade. Arbitrum Sepolia functions as a testnet chain mirroring the features of the Arbitrum One mainnet.
It is tethered to Ethereum’s Sepolia testnet, providing a secure environment for developers to experiment.
The Dencun upgrade has successfully deployed on various testnets, establishing a clear timeline for the mainnet launch. It was deployed on Goerli on 17th January, Sepolia on 30th January, and Holesky on 7th February.
Among the various enhancements in the upgrade, the core component is EIP-4844, also known as proto-dank sharding. This EIP expands the blockchain’s data blob capacity and reduces gas fees for Layer-2 rollups.
With the implementation of EIP-4844, Arbitrum, and other Layer-2 solutions anticipate lower gas fees. The hard fork to finalize these updates is scheduled for 13 March.
State of Arbitrum L2 dominance
An examination of Arbitrum’s Total Value Locked (TVL) on L2 Beats indicates its sustained dominance among other Layer 2 solutions. At the time of this writing, its TVL was over $13.3 billion. This constitutes more than 45% of the entire Layer 2 TVL, which was almost $30.5 billion.
Notably, the analysis of the TVL trend on DefiLlama showed that Arbitrum’s TVL was currently at its historical peak.
Furthermore, when reviewing its volume chart, it was evident that Arbitrum had experienced a surge of over $1 billion in the last two days.
This is particularly noteworthy as these are the only days in the month where the volume exceeded the $1 billion mark. The last instance of reaching this volume level was on 12th January.
ARB sees slow price movement
Despite the rapid activity on the network lately, the price movement of the Arbitrum ARB token has been relatively sluggish. An analysis of the daily timeframe chart for the past seven days reveals that its price has yet to witness a double-digit increase.
Realistic or not, here’s ARB’s market cap in BTC terms
The most substantial increase observed during this period was a 3.2% rise on 25th February.
At the time of this writing, it was trading around $1.9, showing an increase of over 2%. Also, the recent upward trends have lifted it above the neutral line on its Relative Strength Index (RSI).
Source: Trading View