Arbitrum (ARB), a native token of Offchain Labs, has been on the rise this year as investors join the "hype" train. Crypto celebrities were speculating on social media that ARB would approach $100 next, making early investors millionaires. In the cryptocurrency markets, jumping from $1.50 to $100 in a short amount of time is nothing unusual, but not every token experiences similar growth.
The majority of ARB holders, however, think that the token might hit $100 during the upcoming bull run and provide them with the financial rewards they are hoping for.
When Arbitrum can Reach $100?
At its present price of $1.23, Arbitrum needs to increase 8,100% during the following bull run to reach the $100 mark. The likelihood of that happening is still remote because for its market cap to surpass $100, it must rise past $1 trillion. The market capitalization of bitcoin is at $532 billion, or halfway to $1 trillion.
In a recent video to his 443,000 YouTube subscribers, cryptocurrency analyst InvestAnswers warned that Arbitrum might not hit $100 any time soon.
The researcher argued that because there is a significant concentration of ARB tokens among whales, regular investors are kept at bay. He emphasized that Arbitrum still has to unlock almost 87.2% of its token circulation.
"If that happened, Arbitrum's market cap would be totally diluted, which is $1.3 trillion. Never will it be worthwhile, please understand. Just consider the bigger picture. Do your maths on the back of a serviette and be careful what you read; don't just declare, "Well, I can purchase anything for a dollar and sell it for $100." No, it won't happen, he assured.
At the time of publication, Arbitrum's share price was $1.24, up 7% over the previous day's trading. ARB is now down 85.75% from the $8.67 all-time high it attained on March 23, 2023.
