- Arbitrum welcomed PancakeSwap in its ecosystem.
- PancakeSwap is one of the leading players in decentralized finance (DeFi).
- ARB recently formed a falling wedge pattern on the 4H chart.
ARB, Arbitrum’s crypto token, drifted upwards on Thursday after the network welcomed one of the biggest players in the industry into its ecosystem. The token rose to $1.17, a few points above this week’s low of $1.1095.
PancakeSwap moves to Arbitrum
In a statement, PancakeSwap, a leading decentralized finance (DeFi) platforms, said that it had deployed on Arbitrum in a bid to gain more users. This is important news for Arbitrum, a layer-2 scaling network that has gained substantial market share in the past few months.
Read more: How to buy PancakeSwap.
Data compiled by DeFi Llama shows that Arbitrum has become a popular name in DeFi. Over 424 developers have deployed in the network, thanks to its faster speeds and low transaction fees. Its transaction costs go for about 0.01%.
In addition to PancakeSwap, other DEX networks in Arbitrum are GMX, Radiant, Uniswap, AAVE, Stargate, Balancer, and Sushi. Its total value locked (TVL) stands at over $3.22 billion while the number of active uses in the past 24 hours stood at over 155k.
PancakeSwap, on the other hand, is one of the most popular DEX platforms in the world with a TVL of over $1.8 billion. It was initially launched in Binance Smart Chain, where it is still the biggest DEX platform. In the past few months, it has expanded to other chains as the DEX industry gets more competitive. These blockchains are Aptos, zkSync, Polygon, and Ethereum.
PancakeSwap has lost its market share in the past few years. Some of the platforms that have overtaken it are dYdX, Kine Protocol, Uniswap, and Balancer.
Similarly, Arbitrum is also facing a lot of competition among other layer-2 networks. The biggest competitors are Optimism and Polygon. Coinbase launched Base on Thursday while Consensys has launched Linea.
Arbitrum price prediction
The 4H chart shows that the ARB crypto price has been in a general bearish trend in the past few months. Most recently, the token formed a falling wedge pattern, which is a popular bullish sign. It has now moved above the upper side of this wedge.
Also, Arbitrum has moved slightly above the 25-day and 50-day moving averages while the RSI indicator has pointed downwards. Therefore, Arbitrum will likely continue rising as buyers target the key resistance point at $1.2097, the highest point on June 27th.
