Earlier today, crypto analyst Hitesh tweeted that “$ARB at $1 is a FUD,” suggesting that Arbitrum will bring massive revenues with a “surge in demand expected.” Moreover, he stated that Arbitrum is on the “verge of endorsing a significant proposition,” enabling token holders to lock up their $ARB for 12 months, granting them rewards in $ARB from the allotted 175 million supply, based on current voting trends.
$ARB at $1 is a FUD.$ARB is on the verge of taking off, with a massive surge in demand expected.
Arbitrum is poised to approve a major proposal that will allow token holders to lock up $ARB for 12 months, receiving rewards in $ARB from the allocated 175 million supply, based… pic.twitter.com/CpWToMs2dT
— hitesh.eth (@hmalviya9) November 2, 2023
Hitesh is referring to the Lido DAO proposal aiming to seek a 5 million ARB grant worth over $4 million. While the Arbitrum community has strongly opposed the proposal due to the grant’s magnitude and Lido’s alleged centralization, Hitesh emphasized that even if half of the circulating supply is staked, token holders have the opportunity to potentially achieve a 27.5% annual percentage rate (APR) in rewards. Furthermore, he claimed:
This is significantly higher than what you’ll find with $MATIC or $SOL staking.
Data from TradingView showed that Arbitrum’s price broke out from a double bottom at $0.9703, rose 8% to $1.0440, then faced resistance and corrected. Despite the pullback, there’s still potential for further gains, targeting $1.10, $1.20, and the forecasted 30% increase at $1.2375. In an extremely bullish case, it could reach $1.35.
Arbitrum’s price action as per TradingView
Moreover, crypto analytics firm Santiment confirmed a substantial rise in the number of unique daily active addresses on Arbitrum, which suggests increased crowd interaction or speculative interest in the ARB token.
Hitesh predicted an upcoming rise in $ARB’s demand in the future. Additionally, “since it involves locked staking,” the analyst anticipated potential for projects to introduce liquid staking or yield optimization pools on platforms like Curve or Frax, further enhancing the appeal of $ARB.
As reported by Inspex, there are presently more than 95 active proposals listed on Arbitrum DAO’s Snapshot page, collectively requesting 100.2 million ARB tokens, which are valued at over $80 million.
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