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Analyst Jack Niewold recently made a bold claim, stating that Arbitrum (ARB) will inevitably flip prominent cryptocurrencies such as Hedera, Aptos, Stellar, ICP, ETC, LEO Token, Avalanche and XRP. According to Niewold, ARB provides investors with exposure to unliquidatable leveraged ETH beta while outperforming other assets, especially during the current period of elevated Ethereum fees.
However, not everyone in the crypto community agrees with this assessment. Some commentators argue that Arbitrum does not offer anything of substantial value to investors; rather, it simply provides more affordable and convenient access to an existing network.
Alex DovbnyaDespite being a successful business model, especially given the current high fees on the Ethereum network, skeptics question whether Arbitrum has the potential to surpass giants like XRP or Aptos.
It is worth noting that XRP and Aptos are both attempting to offer unique value propositions to their users, unlike Arbitrum, which operates on top of an existing blockchain. XRP, for instance, aims to revolutionize cross-border payments, providing instant, low-cost and secure transactions. Similarly, Aptos is focused on creating a scalable and decentralized infrastructure for Web 3.0 applications.
On the other hand, Arbitrum is an Ethereum Layer 2 solution, designed to enhance the performance of the Ethereum network by providing faster, cheaper and more scalable transactions. The platform achieves this by utilizing Optimistic Rollups, a technology that allows off-chain computation and storage while maintaining the security of the Ethereum blockchain. In essence, Arbitrum enhances the user experience on the Ethereum network without introducing any novel features or functionalities.
While it is undeniable that Arbitrum has gained significant traction and is helping to alleviate the current congestion on the Ethereum network, whether it will surpass major cryptocurrencies like XRP and Aptos remains to be seen.
Alex Dovbnya
Vladislav Sopov
U.Today Editorial Team
Dan Burgin