Slowdown…. And Stop!

Let’s talk about something boring today!

How do we bring the next 1 billion people into crypto?

That’s not a boring question, but the answer requires us to do boring things.

We’ve talked a lot about Arbitrum in the past – so what’s new today?

Long story short, Arbitrum is focusing on doing boring things that might take ARB from single digits to double, maybe triple digits.

Let’s see what’s under the hood.

TLDR 📃

• Arbitrum's focus on 'boring' yet foundational features like account abstraction and Arbitrum Stylus can propel its token to the moon.
• Arbitrum Orbit, much like Optimism's "OP Stack," enables developers to build app-specific chains, benefiting ARB token holders through transaction fees.
• The upcoming Ethereum upgrade, EIP-4844, adds further hype for Layer 2 solutions and could significantly benefit tokens like ARB.
• Despite its current 'boring' status, the strategic moves Arbitrum is making might turn ARB into an exciting performer in the near future.

Disclaimer: Not financial or investment advice. Any capital-related decisions you make are your responsibility and yours only.

Onboarding the 1 billion users into crypto 📈

For the crypto economy to grow, it must reach the masses to onboard new cohorts of users and developers.

Arbitrum aims to break 'The Chasm,' transitioning from merely onboarding early adopters, who have taken the time to learn how to navigate crypto, to onboarding the early majority in the next cycle.

Recently, two crucial developments in Arbitrum are set to accelerate this process: the introduction of 'account abstraction' and the Arbitrum stylus.

Account abstraction: from dumbphone to smartphone 📱

Account abstraction is a new model for moving crypto from the current 'one-account-fits-all' model to a future where the account is tailored to the user’s needs.

With account abstraction, we can transform a crypto wallet from a dumbphone that can only make calls and send texts into a smartphone on which you can install various apps – all of which boils down to improving the user experience in crypto.

Arbitrum’s AIP-2 proposal will make it the first Layer 2 network to fully support account abstraction across the entire chain.

Enabling this will unlock many new functions and ways for users to interact with crypto on Arbitrum. Some of such functions include:

• Social recovery 
• 𝗖𝘂𝘀𝘁𝗼𝗺 s𝗶𝗴𝗻𝗮𝘁𝘂𝗿𝗲 s𝗰𝗵𝗲𝗺𝗲𝘀
• 𝗣𝗮𝘆 𝗳𝗼𝗿 g𝗮𝘀 w𝗶𝘁𝗵 a𝗻𝘆 t𝗼𝗸𝗲𝗻
• 𝗦𝗽𝗼𝗻𝘀𝗼𝗿𝗲𝗱 t𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀
• 𝗙𝗿𝗮𝘂𝗱 m𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴
• 𝗕𝗮𝘁𝗰𝗵𝗲𝗱 t𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻
• 𝗦𝗲𝘀𝘀𝗶𝗼𝗻 k𝗲𝘆𝘀

Making it easier for devs to build on Arbitrum 👨‍💻

The second boring that that Arbitrum is doing is making it easier for developers to create Web3 apps within its ecosystem.

If a developer wants to create an application on Arbitrum, they must be proficient in Solidity, the main language used on Ethereum.

This specification means that developers skilled in other programming languages like Rust won't be able to work with Arbitrum.

Now, Arbitrum is addressing this limitation with Arbitrum Stylus.

With Arbitrum Stylus, developers can create dApps on Arbitrum using other programming languages like Rust and C++.

For context, C++ has a base of 12 million devs, Rust has 3 million developers, but there are only an estimated 20,000 developers proficient in Solidity.

But how do boring things like account abstraction and programming languages benefit ARB? This is where Arbitrum Orbit comes into play.

Supercharging the ARB token with Arbitrum Orbit 🔥

Arbitrum Orbit is Arbitrum's version of the now very popular "OP Stack" from Optimism.

With Arbitrum Orbit, developers can create an app-specific chain on top of Arbitrum instead of building their apps directly on the main Arbitrum chain.

All these app chains will create value for ARB by generating transactions requiring gas fees to be paid in ARB.

Beyond Arbitum Orbit, Arbitum is also set to benefit from Ethereum’s EIP-4844, which we covered in our January report.

EIP-4844 will enable Arbitrum (and other layer 2 solutions) to provide cheaper transaction fees and retain more revenue, as it won't have to pay as big of a share to Ethereum anymore.

Once the Arbitrum Orbit and EIP-4844 become operational, you can expect ARB to switch from being a boring token to an exciting performer.

And this is the main reason we firmly believe that now is the perfect time to accumulate ARB before the hype kicks in.

Let’s see what the charts have to say!

We will be buying ARB at this point 🛒

Since registering a new all-time low in June, ARB surged by ~48%, hitting resistance at $1.2850 - $1.26. Currently, that's the only obstacle keeping its price from getting to $1.443.

Interestingly, after getting rejected from resistance, ARB's price dropped to support at $1.15 and instantly saw demand, as we can see in yesterday's candle. Therefore, the ideal entry for ARB would be inside the $1.15 - $1.10 support region, as the shown demand indicates that more upside is likely from here.

Of course, the $0.94 - $0.9075 region would be a more optimal region to accumulate from since the risk/reward ratio would increase. Still, there's no technical factor that hints at ARB reaching that region anytime soon. The likely outcome is UP, which is why we got our eyes on $1.26 - $1.2850.

Cryptonary’s take 🧠

Arbitrum is playing the long game with Account Abstraction and Stylus. But another thing we haven't touched on is the Arbitrum Foundation's Grants program.

The icing on the cake makes Arbitrum more competitive against Optimism and attracts developers to build on Orbit by providing them with funding.

Combining these fundamental catalysts in a cocktail with a narrative that can generate attention, like the EIP-4844 upgrade, creates the perfect recipe for ARB to build up the momentum needed to soar.

And that's why we view accumulating ARB within the $1.15-$1.10 range as a big opportunity with potential upside in the second half of this year.

As always, thanks for reading. 🙏

Cryptonary, out!