- Arbitrum’s newly approved proposal could bring about important changes to the network.
- ARB was at a crossroads after running out of bullish momentum.
The Arbitrum [ARB] community just passed a proposal that might have a significant impact on user experience and security moving forward. This proposal paves the way for account abstraction which could make Arbitrum accounts more attractive.
Read Arbitrum’s [ARB] Price Prediction 2023-24
According to the official announcement, account abstraction will enable the creation of smart contract wallets. They are reportedly more flexible, user friendly and more secure than regular externally owned accounts.
This approach will offer a departure from the seed phrase-based method in favor of other recovery methods such as social recovery.
Arbitrum Improvement Proposal #2 has officially passed 🎉
AIP-2 improves support for Account Abstraction, making development around Smart Contract Wallets easier than ever.
The frontier of improving web3’s UX starts here, so let’s explore some use cases 🧵 pic.twitter.com/GfBd4rmN0Y
— Arbitrum (💙,🧡) (@arbitrum) July 20, 2023
The recently passed proposal will not only facilitate more security but also offer more advantages. The report revealed that users will be able pay fees on the network using any ERC-20 token. This will give users more flexibility since they will not have to convert their holdings into ETH.
ARB token price analysis
The changes that will come about as a result of the new proposal could trigger more demand for ARB tokens. Speaking of, ARB has been rallying since mid-June but has recently started showing signs of bullish exhaustion.
The first sign is the lateral price movement in the last few days.
ARB traded at $1.25 at the time of writing, representing a 38.64% premium from its lowest price point in June.
Source: TradingView
Key points to note – ARB did not manage to push into overbought territory despite declining bullish momentum. It did, however, come close to being overbought. Meanwhile, the MFI has continued to extend its upside, suggesting that there is still some bullish momentum counteracting the sell pressure.
How much longer can the bulls hold on for? Perhaps on-chain data may offer some insights. ARB’s supply distribution indicates that addresses have not recovered much after the large dip that we observed at the start of June.
Source: Santiment
ARB maintained an upside despite the above observation. The currently observed low sell pressure aligns with some on-chain findings. For example, investor confidence remained at press time high despite briefly wavering in mid-June.
Moreover, weighted sentiment has so far recovered back to its highest monthly levels.
Source: Santiment
How much are 1,10,100 ARBs worth today?
In addition, ARB’s mean coin age has been rising for the last four weeks and is currently close to its highest level during the same period. However, these findings do not necessarily guarantee that prices will remain at their press time levels.
Sell pressure may shave off some of the recent gains, but this might largely depend on overall market conditions.
