Arbitrum’s native ARB tokens totaled more than $2 billion in trading volume in the first 24 hours since going live, data shows.
The ARB token serves as a means of governance for the protocol. Holders of ARB can participate in decision-making processes, such as proposing and voting on protocol upgrades or changes.
Among crypto exchanges, Bitget and Huobi led volumes with over $250 million worth of ARB traded. Decentralized exchange Uniswap, which relies on smart contracts to match trades between users, saw over $227 million in trading volumes – which netted over $500,000 in fees for liquidity providers.
ARB traded over $1.43 at press time on Friday, garnering a market capitalization of $1.8 billion based on a circulating supply of 1.25 billion ARB, according to CoinDesk data.
Meanwhile, some market observers see growth ahead for ARB tokens but warned about short-term volatility.
“We’re seeing a feverish trading environment for ARB tokens as the airdrop just launched. Airdrops logically garner a lot of retail attention, but often result in the price tanking as traders offload their tokens rapidly,” said Henry Liu, CEO of BTSE, in a Telegram message to CoinDesk.
“Despite the selling pressure from the airdrop, it remains to be seen what potential utility there is, and whether integration into Arbitrum’s wider [decentralized finance] system could provide some new impetus for bullish sentiment,” Liu added.
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