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- TreasureDAO has introduced a proposal to migrate its Web3 gaming ecosystem from Arbitrum to ZKsync.
- Arbitrum dApp volumes are down 33% in the last 24 hours.
TreasureDAO has announced plans to migrate its Web3 gaming ecosystem from Arbitrum [ARB]. In one voting proposalthe DAO noted that ZKsync was better suited to meet its gaming needs.
According to the statement, most of the liquidity in the Arbitrum ecosystem came from decentralized finance (DeFi) and not gaming. Furthermore, Arbitrum’s program to support Web3 games was implemented at a slow pace.
The DAO said:
“We are disappointed with the pace of the Arbitrum Gaming Catalyst Program (GCP) to catalyze and support gaming on Arbitrum.”
Treasure is the largest gaming protocol on Arbitrum with a total value of $6.42 million per DappRadar. This is almost three times higher than the next largest gaming project on the Layer-2 network.
The proposal coincided with a significant drop in dApp activity on Arbitrum. DappRadar shows volumes down 33% to $1.08 billion in the past 24 hours.
Source: DappRadar
Arbitrum Prize Fight
ARB price faced headwinds after falling 0.5% to $0.517 at the time of writing. The dismal performance was due to choppy price movements in the broader market as traders showed uncertainty.
Arbitrum traded within a parallel channel, showing that bullish momentum is in play. However, the uptrend weakened as the ARB dropped below the centerline of this channel.
The bullish thesis will be debunked if ARB breaks below the channel and breaks the critical support at $0.508.
This is a multi-month support level as the ARB has recorded significant declines each time it has failed to hold.
Source: TradingView
The Stochastic Relative Strength Index (RSI) stood at 40, indicating that sellers have the upper hand at the time of writing. Additionally, the Awesome Oscillator (AO) bars flashed red, indicating potential downside movement.
However, the bears were yet to take control of the price action as the Stochastic RSI line was above the signal line.
If ARB wants to debunk the bearish thesis, it needs to regain levels above $0.55 for a bullish breakout above the upper trendline.
A rise in network activity could support a bullish recovery. Recently, Ethereum co-founder, Vitalik Buterinefor which Arbitrum was praised be ahead from other layers 2 in terms of maturity.
Read Arbitrums [ARB] Price forecast 2024–2025
Data from L2Beat showed that Arbitrum was TVL’s largest layer-2 network.
However, over the past 24 hours, it has underperformed its closest competitor, Optimism [OP] and Base, whose TVL increased by 3% and 4% respectively.
