$ARB

Given all the AI hype, it seems like people have forgotten about web3. Well.. I suppose not completely as the regulators have crypto squarely in their sights. That’s a story to watch in the coming months.

In other news in crypto world, Arbitrum just ran an airdrop for their token $ARB last week. Arbitrum is the largest Ethereum layer 2 platform. I’m not the foremost expert in crypto, but generally speaking a layer 2 or L2 platform is a network that sits on top of a L1 like Ethereum. L2s are a solution to the scalability problem of Ethereum and allows transactions to go faster and cheaper.

I’ve been playing around with L2s, specifically Arbitrum over the last year and half or so. The first thing I noticed is that the cost of the transaction (gas) is night and day compared to a transaction on Ethereum directly. It made a lot of crypto gaming built on-chain actually possible. I’ve dabbled in a lot of projects on Arbitrum and have had a lot of fun with it.

Arbitrum did an airdrop of $ARB last week in order to give their users governance tokens to vote on the future of Arbitrum. Of course, one (major) side point to all this is that these tokens can also be sold as they can be viewed as ownership tokens of Arbitrum. The market cap currently sits at around $12B fully diluted.

I’m overall bullish on the future of L2s such as Arbitrum. They solve the scalability issues of Ethereum at the moment and I’m part of a lot of interesting projects being built on Arbitrum.