Arbitrum’s ARB price rallies after Chainlink CCIP mainnet launch
- Arbitrum’s ARB price climbed nearly 2% since the announcement of Chainlink CCIP mainnet going live on Arbitrum One chain.
- Chainlink’s oracle networks have enabled over $8 trillion in on-chain transaction value and could power a variety of use cases on Arbitrum.
- Arbitrum ecosystem aims to improve web3 UX and encourage higher participation with Chainlink CCIP.
Arbitrum, one of the largest Ethereum Layer 2 chains, launched Chainlink Cross-Chain Interoperability Protocol (CCIP) mainnet on its Arbitrum One chain.
The protocol’s arrival on Arbitrum is key to the further development and growth in the ARB ecosystem as it is expected to improve the user experience and attract developers.
Arbitrum welcomes Chainlink CCIP on its Arbitrum One chain
Chainlink’s CCIP provides web3 developers with an easier interface to build secure applications, which helps link different blockchains in crypto. The protocol is powered by decentralized oracles that have enabled up to $8 trillion in on-chain transaction value.
Chainlink’s arrival on Arbitrum One is a significant development for the Layer 2 projects. Chains like Arbitrum play a key role in offloading transaction congestion and enabling developers to build in the Ethereum ecosystem with ease. Projects including BetSwirl, Galaxis, Stafi, Raft or Polychain Monsters have already integrated Chainlink CCIP on Arbitrum.
.@Chainlink CCIP is now live on Arbitrum One!
— Arbitrum (,) (@arbitrum) September 21, 2023
Why #CCIP is a game-changer for the Arbitrum ecosystem ⬇️ pic.twitter.com/sE7uXCZda3
In its announcement, Arbitrum explains how CCIP puts security first, and offers features such as the Risk Management Network, which monitors protocols for malicious activity.
The Chainlink CCIP mainnet went live on Arbitrum on Thursday. Since then, ARB price has climbed by 2.16%, a significant increase in a 24-hour time frame. Over the past week, ARB price yielded 4.5% gains for holders.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
