On Wednesday, U.S.-based trading app Robinhood (HOOD) celebrated a significant milestone by listing the layer 2 network’s native token, Arbitrum (ARB). This added visibility in the marketplace led to a remarkable 12% increase in ARB’s value, culminating in a trading price of $0.42 after reaching an all-time low of $0.35 just a day prior.
In conjunction with this price uplift, trading volume for ARB rose by 10%, equating to approximately $400 million transacted over the preceding 24 hours. This activity indicates renewed interest among traders and investors, particularly as the total value locked (TVL) within the Arbitrum ecosystem remains robust at $2.8 billion. This figure marks a notable increase from the $2.5 billion recorded at the beginning of November, according to data collected by DefiLlama.
However, despite this relative success in maintaining a stable TVL, ARB’s price still reflects a staggering 82% decline from its record high of $2.41 observed earlier in 2024. This disparity can be attributed in part to significant token emissions; since March 2024, the circulating supply of ARB has surged from 1.5 billion to 4.4 billion. As a result, the market capitalization, which is determined by multiplying the circulating supply with the asset’s price, has demonstrated greater stability than the token’s actual price trajectory.
It is important to note that ARB is not alone in its newfound exposure on Robinhood; it joins a list of other prominent tokens including XRP, Shiba Inu (SHIB), and Bonk (BONK), which collectively experienced price increases between 4.5% and 7% on the same day. Notably, ARB’s sustained rise relative to these other listings may be attributed to its position as the leading layer-2 network, boasting impressive metrics in total value secured (TVS) and user operations per second (UOPS), as reported by L2Beat.
Meanwhile, XRP, despite its mention in former President Donald Trump’s U.S. strategic reserve plans, is struggling to gain equivalent traction, with only approximately $80 million locked in its single XRPL decentralized exchange. In contrast, SHIB and BONK, which are primarily driven by retail speculation as memecoins, continue to draw attention but lack the infrastructural backing seen in projects like Arbitrum.
As the crypto market continues to evolve, the fluctuations in token prices and value storage mechanisms serve as a critical reminder of the complexities and inherent volatility within this space. Investors must remain vigilant and informed as they navigate these shifting landscapes.
