Altcoin ecosystem-supporting funds play a vital role in ensuring long-term performance and are perceived positively by investors. Recent developments in this area could have a lasting impact on altcoin prices despite fluctuations in BTC value.

Arbitrum (ARB) Coin

The DAO of Arbitrum, a well-known layer 2 network of Ethereum (ETH), recently conducted a significant vote. The foundation governing the Ethereum rollup-based Layer 2 network, Arbitrum, has proposed investing hundreds of millions of dollars over the next three years to bolster applications on the platform. The proposal's primary goal is to enhance awareness and adoption of Arbitrum/Orbit/Stylus among developers and gaming enthusiasts.

The Gaming Catalyst Program (GCP) is set to distribute 225 million ARB Coins over a span of three years, equivalent to over $200 million based on current valuations. Initially introduced in March 2024, this proposal received a 75% approval rating on the last working day of the week. Noteworthy supporting entities include L2Beat, Wintermute, and gaming-focused Treasure DAO.

On the contrary, Blockworks Research and Camelot DAO opposed the proposal. Official communication from Treasure DAO highlighted:

“Arbitrum is the nexus of gaming, encompassing all gaming activities, gaming chains, and industry pioneers within its realm. Let's anticipate some remarkable developments.”

The grant application is expected to particularly benefit seasoned developers, potentially leading to the emergence of engaging applications on the Arbitrum network. This, in turn, could positively influence ARB Coin prices through new airdrops and user-engaging applications. All investment and grant assessments will be subject to approval by the GCP team, with DAO decisions holding the power to veto team member appointments. The audit team is allocated a budget ceiling, with operational expenses capped at $25 million. Expenditures exceeding this threshold will necessitate DAO approval.

ARB Coin Price Projection

The decline in BTC value caused a disruption, triggering a sudden dip to $0.901. A comparable surge to the drop witnessed on April 13 ensued, with buyers seizing the opportunity presented by the low valuation. The bullish momentum for ARB Coin now hinges on establishing $1.081 as a support level and striving for higher price points. However, this trajectory is contingent on navigating through Wednesday without encountering a cryptocurrency market downturn.

This article was originally published on COINTURK NEWS: Funds Support Altcoin Ecosystems for Long-Term Performance