Offchain Labs native token Arbitrum (ARB) has been trending this year with investors jumping on the ‘hype’ bandwagon. The social media chatter among crypto influencers claimed that ARB could hit $100 next, turning early investors into millionaires. While going from $1.50 to $100 in a short period isn’t new in the cryptocurrency markets, not every token realizes such growth.
However, the majority of ARB holders believe that the token could reach $100 during the next bull run and deliver them their desired financial returns.
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Arbitrum: Can ARB Reach $100?
Arbitrum is currently trading at $1.23 and needs to rise 8,100% in the next bull run to reach the $100 milestone. The prospect of that occurring remains slim as its market cap needs to climb above $1 trillion to reach $100. Bitcoin’s market cap currently stands at $532 billion which is the halfway mark below the $1 trillion mark.
Cryptocurrency analyst InvestAnswers predicted in a new video to his 443,000 YouTube subscribers that Arbitrum might not reach $100 anytime soon.
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The analyst explained that the ARB token is heavily concentrated in the hands of whales keeping retail investors at bay. He pointed out that Arbitrum has nearly 87.2% of its token circulation left to be unlocked.
“If that were to happen, Arbitrum would have a fully diluted market cap of $1.3 trillion. It’s never going to be worth that, okay? Just put things in perspective. Be careful what you read and do your numbers on the back of a napkin, don’t just say, ‘Oh, I can buy something for a dollar and sell it for $100.’ No, it’s not going to happen,” he said.
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At press time, Arbitrum was trading at $1.24 and is up 7% in the 24-hour day trade. ARB is down 85.75% from its all-time high of $8.67, which it reached on March 23, 2023.