Altcoin ecosystem-supporting funds are crucial for long-term performance. Investors see these funds as a bullish signal. The latest move may affect altcoin prices long-term despite BTC price drop.
Arbitrum (ARB) Coin
The popular Ethereum (ETH) layer 2 network Arbitrum’s DAO held an important vote. The foundation behind the Ethereum rollup-based Layer 2 network Arbitrum aims to spend hundreds of millions of dollars over the next three years to support applications on the network. The proposal aims to “immediately increase awareness and adoption of Arbitrum/Orbit/Stylus among developers and players in the gaming community.”
The Gaming Catalyst Program (GCP) will allocate 225 million ARB Coins over three years, valued at over $200 million at current rates. This proposal, first announced in March 2024, was approved with a 75% Yes vote on the last business day of the week. Supporting organizations included L2Beat, Wintermute, and gaming-focused Treasure DAO.
On the opposing side were Blockworks Research and Camelot DAO. Treasure DAO’s official social media account stated:
“Arbitrum is the home of gaming. This includes all games, gaming chains, and all founders in its orbit. Let’s focus on some miracles.”
More established developers will benefit the most from the grant application. This move, which could lead to more interesting applications on the Arbitrum network, may positively impact ARB Coin prices through new airdrops and user-attracting applications. All investments and grant evaluations will be approved by the GCP team, and DAO decisions will have the authority to veto team member appointments. The audit team has a budget cap, with a maximum of $25 million available for operational expenses. Amounts above this will require DAO approval.
ARB Coin Price Prediction
BTC decline disrupted things, causing a sudden drop to $0.901. A similar spike to the April 13 drop occurred, and buyers saw this low level as an opportunity. Now, ARB Coin bulls need to turn $1.081 into support and aim for higher levels. However, this requires getting through Wednesday without a crypto market crash.
