TVL Arbitrum Doubles in One Year – ARB Price May Continue to Rise
The Arbitrum (ARB) price has surged more than 85% over the past month, following widespread bullish crypto market sentiment stemming from anticipation of the approval of a Bitcoin exchange-traded fund (ETF). Additionally, this layer 2 chain has seen a steady increase in total value locked (TVL) over the past week. ARB's on-chain metrics also lean towards future price increases.
TVL Arbitrum more than doubles from 2023
Total value locked (TVL) on the Arbitrum chain more than doubled last year. According to data from DeFiLlama, TVL increased from $1 billion in January 2023 to $2.47 billion on January 10, 2024.
An increase in TVL often shows the level of engagement between the chain and the users and demand from market participants.At the same time, ARB price has increased more than 85% in the past 30 days.
On-chain metrics such as active addresses and volume on Arbitrum have also increased continuously since January 7 according to data from Santiment.
Arbitrum currently dominates the layer 2 market with a 49.2% market share in the $19.91 billion ecosystem. Data from L2Beat shows that behind Arbitrum is Optimism, with a market share of 28.41%.
Therefore, Arbitrum's on-chain metrics support the bullish thesis for ARB. However, it remains to be seen whether the price will correct or continue its upward momentum. Today, analyst OnChainDataNerd noted that market makers have sent large amounts of ARB to exchanges in the past 24 hours. In general, an increase in supply on exchanges is considered a bearish sign because it is more likely to be sold.
Market makers GSR and Wintermute sent 7.5 million and 4.78 million ARB respectively to the exchanges. These deposits total more than $20 million ARB. It is unclear whether those tokens will be sold or kept in the exchange's wallet.
If market makers “drain” stock, it could increase selling pressure on ARB and negatively affect prices.
