Arbitrum’s newly approved proposal may entail significant changes to the network. ARB was at a crossroads after it ran out of bullish momentum.
The Arbitrum [ARB] community just passed a proposal that could have a significant impact on user experience and future security. This proposal paves the way for account abstraction, which could make Arbitrum accounts more attractive.
Read Arbitrums [ARB] Price Forecast 2023-24
According to the official announcement, account abstraction will enable the creation of smart contract portfolios. They are said to be more flexible, easier to use and more secure than regular third-party accounts.
This approach will provide a departure from the seed-based method in favor of other methods of recovery, such as social recovery.
Arbitrum Improvement Proposal #2 has been officially adopted 🎉
AIP-2 improves support for Account Abstraction, making development around Smart Contract Wallets easier than ever.
The frontier of improving web3’s UX starts here, so let’s explore some use cases 🧵 pic.twitter.com/GfBd4rmN0Y
— Arbitrum (💙,🧡) (@arbitrum) July 20, 2023
The recently adopted proposal will not only facilitate greater safety, but also provide greater benefits. The report revealed that users can pay charges on the network with any ERC-20 token. This gives users more flexibility as they do not need to convert their holdings into ETH.
ARB token price analysis
The changes that will take place as a result of the new proposal could lead to more demand for ARB tokens. Speaking of, ARB has been rallying since mid-June, but has recently begun to show signs of bullish exhaustion.
The first sign is the lateral price movement over the past few days.
ARB was trading at $1.25 at the time of writing, representing a 38.64% premium over its June low.
Source: TradingView
Key points to note – ARB failed to break into overbought territory despite fading bullish momentum. However, it came close to overbought. Meanwhile, the MFI has continued to increase its upside potential, suggesting there is still rising momentum counteracting selling pressure.
How long can the bulls hold out? Perhaps on-chain data can provide some insights. ARB’s supply distribution indicates that addresses have not recovered much after the major dip we observed in early June.
Source: Sentiment
ARB maintained an increase despite the above observation. The currently observed low sales pressure is consistent with some findings in the chain. For example, investor confidence remained high at the time of writing, despite a brief hesitation in mid-June.
In addition, weighted sentiment has returned to its highest monthly levels to date.
Source: Sentiment
How much are 1,10,100 ARBs worth today?
In addition, ARB’s average coin age has increased over the past four weeks and is currently close to its highest level in the same period. However, these findings do not necessarily guarantee that prices will remain at press levels.
Selling pressure may wipe out some of the recent gains, but this may largely depend on general market conditions.
This post All about Arbitrum’s new proposal and how it affects you
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