Arbitrum and Starknet are vying for control of L2 despite falling prices

  • Starknet and Arbitrum led the pack in terms of user fees, bested only by zkSync Era.
  • The price of both tokens declined despite the positive performance of the protocol.

After Dencun’s upgrade, the competition in the second-tier sector has increased significantly over the past few days. There are two networks, in particular, that have been in the spotlight: Starknet [STRK] And arbitration [ARB].

Gas fees are low

Starknet and Arbitrum outperformed all other networks in terms of fees charged per user, second only to zkSync Era.

Source: Artemis

Although the charges on both networks were similar, there was a significant discrepancy between activity on both protocols.

Arbitrum, in particular, has been able to attract a large number of addresses on the network and has seen a significant increase in activity, crossing the one million mark in terms of active addresses daily.

Daily transactions on the Arbitrum network also grew and exceeded 3 million points. Starknet saw similar growth on both fronts, but the numbers were nowhere near as high as Arbiturm.

In order for Starknet to adequately compete in the second language space, it will need to attract more users to the network.

Source: Artemis

This same discrepancy has been seen in the performance of both protocols in the DeFi sector.

For example, TVL (total value locked) remained stable for both networks. But live trading volumes on both protocols have fluctuated significantly.

Source: Artemis

STRK vs ARB: Price Actions

In terms of price action, at press time, ARB was trading at $0.8017, having grown by 1.1% over the past 24 hours. Since May 27, its price has declined significantly, showing several lower lows and lower highs.

See also  Bitcoin Price: Why the Cryptocurrency Is Rising Again

Despite the recent rise in ARB price, it is unlikely that there will be a reversal in the ongoing downtrend.

ARB’s Relative Strength Index (RSI) remained at 42.27 at press time, indicating that bullish momentum has waned. However, the CMF (Chaikin Fund Flow) remained high, indicating that there is still some money flowing into the network.

Source: Trading Offer

Realistic or not, this is the market cap of ARB in terms of BTC

STRK also saw similar price action after moving sideways throughout May, with the token falling significantly in the past few days. No significant increase in its price was observed.

Both the Relative Strength Index, at 35, and the CMF, at -0.10, paint a bearish picture for the symbol’s future. At the time of writing, STRK was trading at $0.708.

source; Trading offer

Leave a Reply

Your email address will not be published. Required fields are marked *