The price of Arbitrum (ARB) has dropped 10% in the past 24 hours. This Ethereum Layer 2 (L2) token is among the coins that have decreased the most in price, along with Fartcoin (FARTCOIN), Pump.fun (PUMP), and Aerodrome Finance (AERO).
In fact, the entire cryptocurrency market has witnessed a decline of 1.75%, with total market capitalization dropping to 3.97 trillion USD. These declines are driven by reductions in Funding Rate and open interest across the market.
Why did the ARB price drop today?
According to data from Tokenomist, Arbitrum is expected to unlock 92.65 million ARB tokens, equivalent to a value of 40.33 million USD. This amount accounts for 2.09% of the total supply issued. In the past three months, 277.95 million ARB have been circulated. With a current supply of 5.15 billion, the latest increase is 1.79%, indicating short-term downward pressure.
On-chain data from Arbiscan also shows that activity in the network is declining sharply. Specifically, total transaction fees reached 11.62 ETH, as of the press time, heavily impacted with a decrease of 74% after transaction volume fell by 4.72%.
With 63,413 new addresses and only 127 verified contracts per day, this decline is becoming more severe.
These two metrics have decreased by 46% and 11.8%, respectively, reflecting a decline in user interest in L2 solutions.
ARB is attempting to hold above the reversal zone
On the chart, Arbitrum is struggling to maintain the reversal zone of 0.48 USD after being rejected near the level of 0.60 USD. Despite a sell-off that began late on August 15 and extended into the next day, the overall price structure still maintains an upward trend, with ARB trading above the upward trend line for the past 10 days.
The Bollinger Bands indicator is pointing down, indicating an increase in volatility. If ARB can hold above the reversal zone of 0.48 USD, the possibility of returning to the resistance level of 0.60 USD is feasible. However, if it cannot maintain this level, the price may drop to 0.43 USD or lower.
The MACD indicator has also turned red, providing further evidence that this cryptocurrency has fallen more than 10%. This indicator shows an increasing dominance of sellers over buyers.
Overview of TVL, DEX, and trading volume
As of the press time, Arbitrum recorded a total trading volume of 1.70 billion USD, of which DEX trading reached 905 million USD and Perps trading volume was 870 million USD. Despite the sell-off today, the ecosystem still shows resilience.
The total value locked (TVL) has increased to 5.59 billion USD, trading near the peak in December 2024 and approaching an all-time high of 6.17 billion USD.
This indicates that TVL still maintains strength, showing that this altcoin is not entirely defeated. Instead, ARB is facing a short-term correction, sharper than similar coins like Optimism (OP).