Angel investor Mc Kenna shared that he is currently filling his portfolio with a single altcoin. A member of ROK Capital counts on the developments planned for the coming years for its long-term investment.
Mc Kenna makes a bull bet on this altcoin he has filled his portfolio
Mc Kenna, former head of research at Rok Capital, is closely following the Ethereum-based layer-2 scaling solution Arbitrum (ARB). Arbitrum made rapid progress based on metrics such as top TVL, number of daily transactions, and number of users. It has become one of the most popular DeFi projects at the moment.
Kenna shared that the ARB token makes up the bulk of his portfolio. He says he is particularly bull about Arbitrum.
Why $ARB is my current largest portfolio holding:
Arbitrum is an optimistic rollup layer-2 on Ethereum that is actively capturing Ethereum protocols, users and liquidity.
Let's take a look at network data, it's growing ecosystem, trading frameworks and the EIP-4844 catalyst… pic.twitter.com/tQcrrCkafH
— McKenna (@Crypto_McKenna) May 12, 2023
Why Arbitrum (ARB)?
At this point, the angel investor draws attention to the rapidly growing volume of Arbitrum. It points to several factors driving growth in Arbitrum, such as increased network activity, growing ecosystem, and teamless unlocking by 2024.
As of January 2022, ETH, ARB and Optimism had 56.91%, 0.91% and 0.18% of total TVL, respectively. While the figure for Ethereum remains relatively the same, available data shows that ARB has increased TVL dominance by 5.56 times.
On the other hand, since the beginning of 2023, the number of 7-day moving transactions on Arbitrum has increased from 222.7 thousand to 1.45 million. In addition, active addresses in the network increased from 35.5 thousand to 307 thousand. At the same time, Arbitrum has surpassed Ethereum’s first layer transaction count. Currently, it continues to maintain this superiority. The crypto investor also highlighted the highest gas consuming projects in ARB by TVL.
These include Gains Network (GMX), Uniswap (UNI), Rari Capital (RDNT), and Stake DAO (STG).
‘I can wait until this date’
Kenna then compared Arbitrum’s unlocking programs to other projects. He stated that there is no immediate pressure to sell ARB tokens as the investor and team unlock for Arbitrum will be released on March 23, 2024.
Why altcoin investors prefer Arbitrum in the first place
Arbitrum has lost about 15% of its value in the last seven days. This decline was one of the worst performances of the Top 50 in market capitalization. Despite the losses, the number of ARB holders continues to increase since March 25. According to Token Terminal, the increase was exponential and helped the number of owners exceed 640,000.
ARB tokenholders & DAUs pic.twitter.com/JPvGc6gjxE
— Token Terminal (@tokenterminal) May 11, 2023
Although the ARB bull weakens, it does not say the same for its development activities. The metric measures developers’ input for upgrades in a network. Santiment revealed that development activity was 15.31.
So this shows that the Arbitrum developer community is committed to the goals of the project. As a result, it could also be a reason for a bullish run if it continues.
How is the ARB price technically?
In terms of price action, the ARB has moved up around 1.5% in the last 24 hours. According to the four-hour chart of ARB/USD, the 20-day Exponential Moving Average (EMA) was below the 50 EMA (yellow) in blue.
cryptocoin.com As you follow, this month large-volume altcoins like Optimism, ImmutableX and Avalanche will unlock a hefty amount of tokens. ARB investors are having a comfortable May at this point.
