Digital assets-focused investment firm Pantera Capital thinks one Ethereum (ETH<\/a>) layer-2 scaling solution should sit \u201chigh on the list\u201d for fundamentals-focused investors looking for projects that have made recent traction in the crypto sector.<\/p>\n Cosmo Jiang, a portfolio manager at Pantera, notes<\/a> in a new analysis that Arbitrum (ARB<\/a>) has taken \u201cmeaningful market share\u201d in terms of transactions in the past year and has been one of the few chains to demonstrate transaction growth in the ongoing bear market.<\/p>\n Jiang argues that Arbitrum has effectively contributed to all of the incremental growth in the Ethereum ecosystem this year.<\/p>\n \u201cArbitrum\u2019s network flywheel is spinning. Based on our field research, it is evident that developers are attracted to the increasing usage and user base that exists on Arbitrum. This is the positive network flywheel: more users translates into more developers being interested in creating new applications on Arbitrum, which in return attracts more users.\u201d<\/em><\/p>\n The portfolio manager also notes that Arbitrum is a profitable protocol that has a market capitalization similar to other layer-1s and layer-2s which only see a fraction of its usage and profit.<\/p>\n ARB is trading around $0.8104 at time of writing. The 42nd-ranked crypto asset by market cap is down 0.86% in the past 24 hours.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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