ARB token DEX volumes and strong liquidity inflows offer a network health snapshot.
Arbitrum’s native token ARB may be among the candidates for a sizable recovery now that investors are hunting for coins with robust upside potential. This token has been flashing a major bullish signal, while the Arbitrum network has also been experiencing robust activity.
ARB token price exchanged hands at $0.30 at press time after rallying by about 27% from its lowest price point last week. This bullish outcome confirmed significant accumulation during its recent lows.
Besides, it also places it among the top digital assets to benefit from liquidity rotation as Bitcoin dominance retreated over the last few days.
However, it was not the only reason why ARB adopted an uptrend.
ARB price tanked to historic lows during the October crash. That outcome also formed a noteworthy price-RSI divergence, which confirmed accumulation.
The fact that the token was also severely discounted also made it quite appealing. Particularly now that investors have been looking for coins with the highest potential upside.
Arbitrum was not just appealing from a price point of view. The network happens to be one of the top Ethereum layer 2 solutions by both market cap and volume.
However, recent data revealed that it could also be leading the L2 pack in terms of transaction speeds.
The network has reportedly been conducting sub-second finality with block time at around 250 milliseconds.
This speed advantage may give Arbitrum a leg up in terms of demand, especially during periods of elevated activity. As a result, ARB token demand may secure an incentive for a solid comeback.
Speaking of incentives, the network just concluded the week with some interesting adoption news. It received more than 100 new tokenized assets at the end of the week courtesy of Robinhood.
This development brought the tokenized asset count to 6444, which are now collectively worth over $8.2 million. In other words, Arbitrum’s RWAs portfolio has been gaining traction and may be among its key adoption drivers.
ARB was the third-largest Ethereum layer 2 coin by market cap at $1.65 billion in the last 24 hours. It secured just over $142 million worth of trading volume in the previous 24 hours.
Abitrum’s fundamental data revealed that the network has been achieving significant growth in key areas.
For example, its collective October network fees totaled $4.1 million, according to Token Terminal.
This was the highest monthly fee that the network achieved since July 2024. The rising monthly fees confirmed that network activity was on the rise.
Speaking of network activity, DEX volume and net inflows surged to multiple monthly highs in October.
DEX volume was quite impressive at $29 billion, which was a 10-month high, while net inflows clocked in above $12 billion, which was a historic high.
Arbitrum’s rising network activity confirmed that the network capitalized on on-chain activity around the recent market crash. However, this may have been a double-edged sword.
Bearish market conditions tend to cause lower DeFi activity. This appeared to have been the case during the last 3 months, during which active addresses cooled down substantially.
For reference, Arbitrum had over 12 million active addresses in August. That figure dropped to around 8.1 million in October.
Nonetheless, Arbitrum might be in a position to tap into recovering market conditions, and this may breathe new life into the ARB token.
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