- Arbitrum’s ARB token has bounced back this week.
- It is still in a price-discovery phase after last week’s airdrop.
- Arbitrum’s DeFi TVL has jumped to over $2 billion.
Arbitrum price has staged a strong comeback in the past few days as investors bought the token’s dip and as its DeFi activity. ARB token rose to a high of $1.4285, the highest point since March 24. It has risen by over 25% from its lowest point this week.
DeFi TVL rebounds
Arbitrum’s ecosystem has seen a strong performance in the past few days. Data compiled by DeFi Llama shows that the total value locked (TVL) in its ecosystem jumped to a high of $2.2 billion, the highest level since November 2021. This is a strong performance considering that the TVL dropped to about $592 million in July last year.
Arbitrum has become the fourth-biggest player in the smart contract industry after Ethereum, Tron, and BNB Chain. The biggest driver of this inflow was Uniswap V3, whose TVL has jumped by 85% in the past 1 month to over $297 million. The other top performers were AAVE V3, Camelot, and Stargate.
Users select Arbitrum in their DeFi and non-fungible tokens (NFT) because of its substantially low fees and faster speeds. According to L2 Fees, the cost to send ETH is just $0.11, which is lower than Polygon’s and Optimism’s $0.21 and $0.24, respectively, Further, its cost to swap tokens is just $0.29 compared to Polygon’s $0.79.
Arbitrum price recent rally coincides with the performance of other cryptocurrencies like Bitcoin and Ethereum. They have all rallied even as regulatory concerns have continued. In most cases, cryptocurrencies tend to move in sync with each other.
Arbitrum price prediction
ARB is still in a price-discovery phase considering that its airdrop happened just a week ago. The token has staged a strong recovery, as I predicted in this article.
On the hourly chart, it moved to a high of $1.4285, which was above the61.8% Fibonacci Retracement level. It has pulled back and retested the important support level at $1.3472, the highest point on March 26. Arbitrum also formed a shooting star pattern.
Therefore, the token will likely pull back and retest the key support at $1.30 and then resume the bullish trend. In the near term, Arbitrum will retest its all-time high of $1.56, which is ~17% above the current level.
