Weak on-chain activity sees Arbitrum drop by 10%; can the price of ARB sustain at $0.48?
In a recent development, the price of Arbitrum's native token, ARB, has experienced a 10% plunge over the past 24 hours, according to CoinMarketCap data. This price drop, however, comes against a backdrop of increasing supply by 1.79%, signaling short-term bearish pressure.
Despite the sell-off, Arbitrum is trading above a 10-day ascending trendline, demonstrating resilience. The network's price fluctuations can be influenced by broader market conditions and investor sentiment, although specific contributing factors are not explicitly mentioned in the latest data.
Network Activity and TVL
Recent data indicates a significant increase in on-chain activity, with a 160% rise in network fees over the last seven days. This suggests growing adoption despite the price downtrend. Arbitrum's Total Value Locked (TVL) has reached $5.59 billion, near December 2024 highs and approaching the all-time high of $6.17 billion. Notable DeFi applications like Aave and Uniswap contribute to this robust ecosystem.
Volume and Market Performance
Arbitrum recorded $1.67 billion in trading volume over a recent week, reflecting strong ecosystem activity. The token surged 15.72% in a short period in August 2025, showing volatility and potential for rapid price movements. However, it has been consolidating near the $0.50 support level, with analysts watching for signs of a breakout.
Current State of Arbitrum
The number of transactions on Arbitrum has fallen by 4.72%, while the number of new addresses has increased by 63,413. The number of new contracts, however, has declined by 11.8% as of press time. Bollinger Bands point downward, signaling increased volatility.
Arbitrum struggles to hold the $0.48 flip zone after facing rejection near $0.60. Failure to hold this zone could lead to a drop toward $0.43 or lower. However, if Arbitrum can stay above the $0.48 flip zone, a move back toward the $0.60 resistance is possible.
At press time, Arbitrum is set to unlock 92.65 million ARB tokens valued at $40.33 million. The Total Transaction Fees on Arbitrum have dropped by 74% as of press time. The DEX trading volume on Arbitrum is $905 million, and Perps volume is $870 million. Arbitrum recorded $1.70 billion in total volume at press time.
In conclusion, while Arbitrum's price may fluctuate due to broader market conditions, its network activity and TVL suggest a robust ecosystem that could support future growth. The TVL resilience indicates that Arbitrum is not entirely defeated, but facing a short-term correction.
- The price drop of Arbitrum's native token, ARB, contrasts with the network's rising on-chain activity, as indicated by a 160% increase in network fees over the last seven days.
- Despite the recent 10% plunge in ARB price and the increased supply, Arbitrum is trading above a 10-day ascending trendline, demonstrating resilience.
- Arbitrum's Total Value Locked (TVL) has reached $5.59 billion, approaching the all-time high of $6.17 billion, with notable DeFi applications like Aave and Uniswap contributing to this robust ecosystem.
- The current state of Arbitrum shows a fall in transactions by 4.72%, while the number of new addresses has increased by 63,413, indicating ongoing interest and activity.
- Arbitrum is set to unlock 92.65 million ARB tokens valued at $40.33 million, with DEX trading volume at $905 million and Perps volume at $870 million, showing the active role of crypto in its finance and investing ecosystem.
