
Arbitrum is a Layer 2 network that aims to reduce transaction costs and improve throughput while inheriting security assumptions from Ethereum.
Why it could matter in 2026
- Large L2 ecosystem activity and integrations
- Scaling tailwinds if Ethereum demand grows
- Developer compatibility with Ethereum tooling
Key risks
- L2 ecosystem risk and bridge risk
- Governance and token utility questions
- Competition among L2s
