- Arbitrum had the third highest DEX volume at the time of writing.
- The ARB has continued to decline over the past three months.
Arbitration [ARB] has maintained its position as the dominant decentralized exchange platform (DEX) and has the most important Layer 2 (L2) Total Value Locked (TVL) in the ecosystem.
Despite the platform’s strong performance in TVL and dominance in the DeFi space, its native token, ARB, has followed a less favorable trend in recent months.
Data showed that nearly 100% of ARB holders were at a loss at the time of writing, reflecting the token’s decline in value.
Arbitrum continues the downward trend
AMBCrypto’s analysis of Arbitrum on a daily chart revealed that it had experienced subdued trading activity in recent months, accompanied by a steady overall decline in price.
The short and long-term averages (yellow and blue lines), which also act as trend lines, indicated that ARB’s price has been on a downward trend since May.
Source: TradingView
ARB was trading at around $0.51 at the time of writing, reflecting a decline of over 1% in the current session.
The MACD (Moving Average Convergence Divergence) further supported the bearish outlook, with signal lines below zero.
The severity of this downward trend is underlined by the fact that almost 100% of ARB holders are now holding their positions at a loss.
More ARB holders are going out of money
The Global In/Out of the Money chart on InTheBlok highlighted the significant impact of Arbitrum’s price drop on its holders.
About 1.19 million addresses were sold out at the time of writing, meaning more than 94% of ARB holders suffered losses.
Only about 2% of holders are profitable, marking one of the lowest profitability levels in the token’s history.
Despite this challenging price development, Arbitrum’s network activity has remained robust.
Data from InTheBlok revealed that Arbitrum is the third highest decentralized exchange platform (DEX) by volume, with a market share of over 14%, behind only Ethereum [ETH] and Solana [SOL].
The combination of a high percentage of holders at a loss and Arbitrum’s strong network fundamentals created a unique scenario.
It suggests that while the utility of the platform remains intact, market sentiment towards ARB may be driven more by speculative factors.
Arbitrum retains much of L2
According to AMBCrypto’s look at Arbitrum’s dominance in the Layer 2 (L2) space, the platform remained impressive.
Data from L2 strokes indicated that Arbitrum controlled more than 39% of the L2 Total Value Locked (TVL), with more than $13 billion locked in the ecosystem.
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However, despite this impressive performance in network usage and dominance in the L2 sector, ARB’s price has not reflected these positive numbers.
The platform’s robust activity has not translated into positive price development for the ARB token, which continues to struggle with muted price movements and a large percentage of holders at a loss.