Comment by @thermo • Hey
can you back your statement .. ? may be explain some good points about it
Comments
- Well, it is pretty straightforward, I won't lie to you, there are no "financial ratios" or other "logical" way to reach a fair valuation of the Arbitrum network right now. So, here are a few points:
- The team: The professionalism of the Arbitrum team makes me think that they are a great team, great people and more.
- UX: I have extensively tested Arbitrum for the past 6 months, I have tested other L2s and Sidechains and L1s, and the user experience in Arbitrum is by far the best I had.
- The Hype: Arbitrum has had the most popular and most used decentralized perps platform launched on top of it, to which it owes its success in great part, as everyone now in the crypto sphere and on the crypto real world knows about GMX and Arbitrum, everyone is waiting for the Airdrop (US, EUROPE, ASIA). This is big.
- The Tokenomics: The fact that the tokenomics are sound, that the team has a vesting of 4 years, as well as the investors, the fact that most of the liquid tokens will be DAO and users makes the potential for price increase extremely high.
- The scalability: Arbitrum token can be a governance token for many more Arbitrum endeavours, and hence, it could become way bigger than it is now...
Why $14, $15 or so? I think Arbitrum, with Arbitrum One, Nova, is by far more valuable than XRP, so $23B market cap is the first target, so realistically talking about $4-5, however, given the hype + the short squeeze that could happen, I don't think a $10-15 price is impossible to be reached, probably as a quick spike, but possible.
Thank you for the question!