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A few days ago, Messari published a report analyzing the demand for security as it relates to crypto assets. The analysis is based on a previous model, Expected Demand for Security Model (EDSM), according to which the key driver for the price of a native blockchain asset is precisely the demand for security from all present and future infrastructure, applications, assets and users on its network. According to this model, other metrics such as total value locked (TVL), maximal extractable value (MEV), revenue, productivity, and narrative are useful but to a lesser extent than security. This model predicts that the demand for security grows as potential new use cases are unlocked, thus creating opportunities for new users to arrive. The impact of security on the price of crypto according to Messari This demand for security would have an impact on the market value of the native assets of individual blockchains, but the report released a few days ago adds that it depends on the applications, the users using them, the asset itself, the infrastructure and the network. So not only does the demand for security vary from crypto to crypto, but it also affects the price differently depending on the native cryptocurrency being considered. Analyzing some specific cryptocurrencies in detail, Messari’s report concludes that from this point of view Ethereum would be underpriced compared to younger ecosystems such as Avalanche and Solana. In contrast, cryptocurrencies from these relatively recent projects would be priced more aggressively due to the growth phase of their ecosystem. Even TRON at this time would be undervalued in this respect, as it has been around for quite some time now and has now been amply proven to perform well. What Messari seems to be suggesting is that during the early growth phase of a crypto project the price of its native cryptocurrency might be overpriced, until the moment it has demonstrated that it can guarantee high levels of security. It also seems to mean that this could be the main dynamic behind the price performance of the various native cryptocurrencies of blockchains. Indeed, given that the cryptocurrencies that have now proven over time to be more secure also seem to be the most undervalued, it is possible that the emergence of new projects resulting in the overvaluation of their native cryptocurrencies could somehow drain capital from those that have been in existence the longest. Speculation vs investment Underlying this phenomenon could be speculation. In fact, many speculators are not interested in making gains over the long term, but are instead more likely to look for the “big score” by investing in projects that have apparent great potential but have not yet exploded. Therefore, they tend to prefer those cryptocurrencies that could give significant returns especially in the short or medium term, forgetting about those that have already made a splash by now. Given that crypto markets are still very speculative, with more speculation than actual investment, this phenomenon is particularly significant and evident. For example, Solana in recent months has amply demonstrated that its security levels are still a long way from those of well-established projects such as Ethereum, but SOL’s price remains about ten times higher than its pre-bubble price. In contrast, the current price of ETH is only just over four times higher, and that of Bitcoin even less than three times higher. There would therefore be a widespread overvaluation of the market value of native cryptocurrencies of projects that have not yet proven to be secure, and an undervaluation of those that have now amply demonstrated that they are secure. The cause may be speculators’ preference for newer projects with greater potential for growth over those that are now established and seemingly less likely to make new booms. On the other hand, projects that have not yet proven to be safe also inevitably have a high level of risk. What was striking in the past few years was the case of IOTA, for which there were enormous expectations about the project, and which instead then plunged into the abyss precisely because of serious safety problems. So speculators tend to prefer riskier projects because they hope to make more money from them, but it is not clear whether they are aware of the greater risks they are taking, or not. Messari’s indications Nevertheless, Messari’s report suggests that developers of crypto projects should focus on applications, development and, of course, users, and not on speculation. In fact, in the long run, any lack of security brings big problems to crypto projects, since according to Messari, security is a determining factor in their success. The goal should be to increase concrete use cases, thus also increase the demand for security that would end up adding value to the base level, i.e., the native cryptocurrency. That is why he also suggests working in order to achieve a harmonious relationship between applications, layer 2 solutions and layer 1. Messari: the underestimation of security in crypto analysis Looking at the sentiment in the markets, security does not seem to be one of those features that is taken most into account by investors, and especially speculators. A lot depends on the time horizon that investors and speculators set as a goal within which to make gains. Long-term investors also value security among the characteristics that a crypto project must have in order to survive and thrive. Speculators, on the other hand, do not care about long-term survival, but only about trivial market performance over the short or at most the medium term. As speculators are probably the majority in crypto markets, sentiment about security does not emerge as particularly relevant, although security itself is very relevant in the long run. The exemplary case of IOTA should again be cited, since doubts about its security had been circulating long before it had those serious problems that scuttled the project. At the time, speculators tended to be unconcerned about these risks, hoping simply that the price would surge at some point so that they could sell and collect capital gains. This was not the case, and both speculators and investors in MIOTA (IOTA’s native cryptocurrency) lost out at some point. On the other hand, Messari suggests that even with regard to well-established cryptocurrencies, such as Ethereum, Tron, or Bitcoin itself, security is an undervalued feature, as their market value turns out to be lower in proportion to that of younger projects, such as Avalanche or Solana, which still have everything to prove in this respect.  
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How is the price of the Avalanche (AVAX) crypto performing? Is it continuing the bullish momentum of recent days? And what is the outlook for the future? Below are all the answers. We recall that Avalanche is a decentralized open source proof-of-stake blockchain with smart contract functionality. AVAX, on the other hand, is the platform’s native cryptocurrency. Avalanche (AVAX) crypto price rises to $17.06 Analysis of the price of the Avalanche (AVAX) crypto: it is up sharply in recent hours, with bulls pushing the price up more than 1.44%. Specifically, the bullish momentum has been driven by increased demand for the digital asset, with many investors looking to capitalize on its potential. Strong buying pressure has pushed Avalanche’s price up to a high of $18, breaking through the previous resistance level of $17.06. The price has been rising steadily since yesterday, when it was trading at a high of $16. Today’s market began trading at $17.06 at the time of writing. However, a move in either direction could trigger the crypto’s next move, as Avalanche’s price is now in a breakout zone. Thus, bullish people need to be careful because a bearish move could make the bullish trend illegitimate. Anyway, to be more specific, the 1-day Avalanche price analysis reveals that the AVAX/USD pair is trading in a narrow range between the $17.08 and $17.06 levels. Bullish traders have been in control of the market since yesterday’s open, which could be an indication of further bullish momentum in the coming days. Even though, volatility is on the rise, which is positive news for bidders anticipating future price developments. Bullish bidders monitor the price of the Avalanche (AVAX) crypto The upper Bollinger bands are currently at $10.014 and the lower Bollinger bands are trading at $6.640. The convergence and divergence of the moving average (MACD) in the 1-day price chart is also in green, indicating bullish momentum. These indications suggest that the bulls are firmly in control of the market and may continue to push prices higher if they can break through the resistance level. The relative strength index (RSI) is trading at 50.62, indicating that the market is neither oversold nor overbought. The AVAX/USD 4-hour price chart also provides evidence that the bulls are firmly in control. The AVAX/USD pair has targeted the $17.06 level in this move, which is the current trading level at the time of writing. The key support level to watch for will be $16.43, while the key resistance level will be $17.15. Further movements in trading volume could also provide further clues as to where the price might go next. In addition, technical indicators also confirm the bullish trend, with the Relative Strength Index (RSI) rising above 60. The moving average convergence and divergence indicator (MACD) in the 4-hour price chart indicates that the Avalanche price is gaining momentum as the fast-moving line crosses the signal line. In addition, the upper Bollinger band is now at $17.748, while the lower band is currently at $16.544. In conclusion, as long as bullish people are in charge, we expect the market to rise further in the near future. However, further upside potential will present itself if the bulls are able to break the $17.15 resistance level in the coming days. However, if instead the bears succeed in breaking the support level of $16.43, we may see a price correction.   Joe DEX and the influence on AVAX in the short term As we know, Avalanche (AVAX) has struggled to get users on its protocol in recent months. As such, dApps on the Avalanche network may be able to help the protocol improve its current situation as they see progress. For example, Trader Joe, one of the most popular DEXs on the Avalanche network, has seen a huge increase in volume in recent weeks, the data show. Indeed, the volume generated on the platform reached a high of $100 million during this period. Along with that, there was a 22.13% increase in the number of unique wallets on the TraderJoe network in the last week, according to DappRadar. In addition, other popular dApps on the Avalanche network, such as Benqi and GMX, also witnessed a similar spike in activity. However, at the moment, the popularity of these dApps is not enough to increase daily active users on the Avalanche network. According to data from Dune Analytics, the number of daily active addresses on the network has dropped from 340,000 to 238,000 over the past three months. This drop in activity has impacted Avalanche’s TVL, which fell from $958 million to $827.29 million over the past month. As a result, the revenue generated by Avalanche was also affected by the lack of activity on the network. In fact, according to the data, revenue fell by 16% during the week. Cumulatively, the total amount of revenue collected by the protocol, at the time of writing, was $606,600.
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After several delays and problems, Arbitrum’s native token, ARB, has finally been launched on the crypto market via an airdrop. However, the price of Arbitrum (ARB) has dropped 90% from its initial IOU price and is currently trading around $1. Only 16% of the ARB airdrop has been claimed, according to data provided by Nansen analytics. The performance related to Arbitrum’s airdrop has not pleased the crypto world The token’s official claim was initiated at 1:05 PM (UTC), at the block height of 16,890,400 on Ethereum. Due to overwhelming demand, both the network block explorer and the claim website crashed. Despite this, users still obtained tokens from the smart contract independently. In addition, 1.16 billion ARB tokens were part of the airdrop, accounting for 11.6% of the total supply of 10 billion tokens. In addition, another 113 million tokens are available for distribution to certain decentralized autonomous organizations (DAOs) on the Arbitrum network. Since only 16% of the total Arbitrum offering (ARB) has been claimed and only a small number of crypto exchanges are responsible for most of the daily trading volume, the ARB price has been subject to significant volatility. On 19 March, the price of the IOU token peaked at $14, with a 24-hour trading volume of about $8 million. However, after its initial airdrop, ARB was subject to a massive sell-off, resulting in a 90% price drop that brought its current value to today’s low of $1.07 and is currently trading down 77% at $1.32. Hundreds of phishing scams were detected before the ARB crypto airdrop The airdrop of Arbitrum’s “ARB” token, a layer-2 solution for scaling Ethereum, appears to have been a popular target for scammers. The community has reported hundreds of phishing scams aimed at deceiving crypto-users. The airdrop sent 10 billion governance tokens via an airdrop to allow holders to vote on changes to the code, launched on 23 March. However, several scammers created fake airdrops with the goal of stealing funds from victims before the official event. In a post on 19 March, Redefine, a blockchain security company, said it had found a fake website posing as the official Arbitrum airdrop website. Screenshots show that the website asks the user to authorize access to their funds, which allegedly results in scammers draining the wallet. The Arbitrum Foundation used a point system to determine who could claim Airdrop tokens and how many they could get, including completing at least four transactions or interacting with at least four smart contracts, transferring funds into the Arbitrum One chain, and depositing more than $50,000 in liquidity into Arbitrum. Scam Sniffer has already identified more than 273 phishing sites linked to Arbitrum, and the number appears to have increased by far before the official launch on 23 March. Only 625,143 wallets out of more than 2.3 million linked to the Arbitrum One chain were found to be eligible for the airdrop, according to Nansen, a blockchain analytics company that helped develop the criteria with Arbitrum. How the world of web3 changes with Arbitrum Arbitrum’s token distribution will not only be limited to users, but also to decentralized applications (dApps) that have been most successful in the ecosystem. These dApps largely originated in Ethereum and have moved to Arbitrum in recent months, including Uniswap, Aave, Sushi, and OpenSea. These popular Web3 companies decided to integrate Arbitrum’s blockchain, facilitated by the great similarity between Ethereum’s blockchain architecture and that of its Layer 2. One of the most successful projects on Arbitrum is the decentralized exchange (DEX) GMX, which was born on this very blockchain and Avalanche. GMX allows its users to engage in leveraged trading through financial instruments called perpetual futures. However, the Arbitrum blockchain is not only populated by decentralized finance projects (DeFi), but also by dApps dedicated to gaming and NFTs. One of the most famous in this regard is Treasure, a Metaverse dedicated to gaming that calls itself “the Nintendo of the Web3.” On Treasure it is possible to play a variety of play-to-earn video games, the ecosystem of which works thanks to the MAGIC token. This token allows players to obtain the non-fungible tokens required to play and is distributed to players as a reward. We can thus say that Arbitrum is proving to be one of the most promising scalability solutions for Ethereum. In the near future, the airdrop of Arbitrum and the ARB token could help make the ultimate leap forward for a blockchain that will most likely continue to make waves in the cryptocurrency world. And despite the popularity of the Arbitrum blockchain, it is important that users maintain caution and care to avoid falling victim to phishing scams and other frauds. Conclusions Despite the disappointing performance of Arbitrum’s ARB token in its debut, the importance of this layer-2 solution for scaling Ethereum cannot be ignored. Due to its Ethereum-like architecture, Arbitrum has attracted the attention of many decentralized finance, gaming and NFT projects, proving to be one of the most promising solutions for scaling the Ethereum blockchain. Despite initial difficulties, it is possible that the ARB token may achieve better performance in the future, helping to solidify Arbitrum’s position as an important solution for the future of cryptocurrencies. Furthermore, the fact that many successful dApps have already chosen to integrate with Arbitrum is a positive sign that indicates confidence in the platform and its ability to effectively scale transactions. There are also interesting projects such as GMX and Treasure that are leveraging the potential of Arbitrum to offer innovative services in decentralized finance and NFT games. Despite the recent underperformance of the ARB token, there are still many reasons to be optimistic about the future of Arbitrum as a scalability solution for Ethereum. As the DeFi and NFT ecosystem grows, the demand for effective scalability solutions will only increase, and Arbitrum has proven to be a robust solution well positioned to meet that demand. At the same time, it is important to remember that the cryptocurrency market is highly volatile and the value of tokens can fluctuate significantly in the short term. However, in the long term, Arbitrum’s technical robustness and adaptability could make the difference in positioning it as a leading scaling solution for Ethereum and the entire cryptocurrency ecosystem.  
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