Arbitrum... How can you not just buy a little?
So let me start by saying that my only real concern is the massive number of tokens airdropped (1.1 billion). There are a lot of people who are sitting on this mountain of free tokens. However, I also think this project has undoubtedly carved out some serious market share and has some real potential in the next couple of years.
Longer-term (greater than 3 years), I'm not sure if Arbitrum can hold off Optimism and some of the other L2s gaining traction, or how the narrative of Optimistic Rollups will play out as the best L2 solution. Additionally, there are some very fast L1s coming soon that might squash the need for a L2 blockchain. That said, I think over the next 2 or 3 years, the momentum and market share should stay in favor with Arbitrum. They are the largest L2 blockchain and larger than most other L1s based on TVL.
In the few weeks since the airdrop, the support levels seem to be around $1.15 and $1.05, and the major resistance levels are around $1.42 and $1.52.
My conservative expectations are that $ARB is near or over $2 by the end of 2023 and between $3 to $5 by the end of 2024.
Currently sitting at a market cap of $1.5 billion and ranked #41, I can see the potential to jump 8x or 10x from here, which would put it in the $10 billion market cap range, where Polygon sits at #10.
I would look to make an entry near $1 (if possible), and I will look to hopefully get out my initial investment around $3 and ride with the remaining bag into the $5 to $7 range.
As stated above, I'm not sure of the long-term viability of this L2 against equally as quick or quicker L1s and L0s that are upcoming, as well as how it will compete in the L2 space vs Zk Rollups. Maybe Arbitrum can pivot and stay ahead of the pack; they certainly are the lead dog right now. Show Less
