Feb 24
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Arbitrum is one of the most heavily used scaling networks in crypto, processing millions of transactions and supporting some of the deepest DeFi liquidity in the Ethereum ecosystem. So why has the ARB token struggled to reflect that success? In today’s deep dive, we break down Arbitrum from the ground up — why it was created, who built it, how it actually works, and why network adoption does not automatically translate into token performance. We explore Arbitrum’s origins at Offchain Labs, its role as an Ethereum Layer 2 built on optimistic rollups, and the key design decisions that prioritised scalability and security over immediate token value capture. From there, we examine the ARB token itself — what it does, what it doesn’t do, and why governance-only tokens face structural challenges in tighter market conditions. This episode also covers token supply dynamics, unlock schedules, DAO treasury behaviour, sequencer economics, and why value capture remains the central unanswered question for Arbitrum. We compare Arbitrum’s model with monolithic chains like Solana, explain why those comparisons often miss the point, and outline the specific conditions that would need to change for ARB’s long-term trajectory to materially improve. This isn’t a price prediction episode. It’s a structural analysis of how modern crypto infrastructure really works — and what Arbitrum teaches us about Layer 2 tokens in this cycle. Drop your thoughts in the comments, smash like, follow for more deep dives — and we will see you at the top.