“Arbitrum” Sets the Crypto World Ablaze with Airdrop Announcement

After much anticipation, Layer-2 solution Arbitrum has finally announced the schedule for its ARB token airdrop, set to take place on March 23.

“Arbitrum” Sets the Crypto World Ablaze with Airdrop Announcement

On the evening of March 16, leading Ethereum Layer-2 platform Arbitrum made a surprise announcement about its ARB token airdrop. Since then, search interest in the new token has skyrocketed over the past 24 hours.

Most Searched ARB Keywords
Source: Google Trends

The keyword “Arbitrum” has dominated public discourse in China, as shown by Google Trends data.

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On Twitter, ARB has also become a trending topic in the US, with over 10,000 related tweets. A 93-second teaser video about the airdrop posted by Arbitrum has garnered 2.5 million views. The project’s Discord channel has also been buzzing with thousands of messages.

However, some users have expressed disappointment over not qualifying for the airdrop, while others have raised questions about the snapshot timing and the circulating supply of ARB.

The newly launched ARB token is an ERC-20 token on Ethereum, with an initial supply of 10 billion ARB and no fixed maximum supply. The estimated annual inflation rate for the token is 2%. According to the announcement, ARB will be airdropped to eligible users on March 23, with the airdrop amount representing 11.62% of the total initial supply.

ARB will play a crucial role in decentralizing the Arbitrum One project and transforming it into a fully autonomous DAO. ARB holders will be able to participate in governance and vote on important updates proposed by the community. Additionally, ARB will serve as the main token for Arbitrum Nova and future Layer-2 products from the project.

Arbitrum currently holds around $1.7 billion in Total Value Locked (TVL), spread across derivative exchanges, decentralized exchanges, and lending protocols.

With this move, Arbitrum follows in the footsteps of its Layer-2 rival, Optimism, which airdropped its OP token in April last year. OP’s market cap is currently $792 million, with a market cap to TVL ratio of approximately 0.84, according to DefiLlama. Given that Arbitrum has more than double the TVL, its market cap is expected to be around $2 billion.