I'm witnessing the outperformance of two highly notable Layer 2 solutions, namely $ARB and $OP (both experiencing over 10% growth in the first two days of the year). This is likely marking a strong comeback for ETH and Layer 2 solutions, especially after Vitalik emphasized 'Make ETH Cyberpunk Again' at the end of 2023.
Fundamentally, $ARB is leading the way in Layer 2, commanding over 50% market share in transactions, users, and bridged funds to the ecosystem, with an active wallet count ranging from 160,000 to 200,000 wallets. Arbitrum's TVL in Q3 also saw robust growth, increasing from $1.6 billion to $2.5 billion.
From a technical analysis perspective, the 2-week chart for $ARB indicates a strong bullish momentum after closing, signaling the potential for a significant breakout to continue its upward trajectory. Holding $ARB seems promising as breaking the all-time high (ATH) could pave the way for further gains, with little resistance above.
Notably, $ARB has seen substantial accumulation by Upbit and Wintermute during Q3. Wintermute holds 44.4 million $ARB (valued at 69 million USD), and Upbit also holds nearly $100 million worth of ARB, which has been withdrawn to cold storage.
Therefore, in this period, it's advisable to keep a close eye on $ARB and its ecosystem. Some potential projects within the $ARB ecosystem that I'm considering include $GMX, $GRAIL, $SYN, WINR, MOZ, and others." Show Less
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