Arbitrum [ARB] has firmly established itself as a leading decentralized exchange (DEX) platform and holds the highest Total Value Locked (TVL) in Layer 2 (L2) networks within the ecosystem.
Despite the platform’s strong TVL performance and dominance in the DeFi sector, the ARB native token has encountered a less favorable price trajectory in recent months.
Current data suggests that almost all ARB holders are at a loss, indicating a decline in the token’s value.
Arbitrum’s Price Downtrend Persists
Analysis of Arbitrum’s daily chart by CryptoCrypto revealed subdued trading activity over recent months, paired with a consistent downward trend in its price.
The short and long-moving averages (depicted by yellow and blue lines) serving as trend indicators indicate a downtrend in ARB’s price since May.
As of the latest update, ARB was trading around $0.51, showing a decline of more than 1% in the present session.
The MACD (Moving Average Convergence Divergence) indicator reaffirms the bearish scenario, with signal lines positioned below zero.
This persistent downtrend is emphasized by the fact that nearly all ARB holders are currently at a loss.
Increasing Number of ARB Holders Register Losses
Insights from the Global In/Out of the Money chart on IntoTheBlock illustrate the significant impact of Arbitrum’s price dip on its holders.
At present, approximately 1.19 million addresses find themselves out of the money, signifying that over 94% of ARB holders are facing losses.
Merely 2% of holders are in a profitable position, marking one of the lowest levels of profitability throughout the token’s history.
Despite the challenging price landscape, Arbitrum’s network activity remains robust.
Data from IntoTheBlock highlights Arbitrum as the third-highest decentralized exchange (DEX) platform by volume, capturing over 14% of the market, trailing only Ethereum [ETH] and Solana [SOL].
The combination of a significant number of holders in the red and strong network performance underlines an intriguing scenario.
It suggests that while the platform’s functionality remains intact, market sentiment surrounding ARB may be more influenced by speculative elements.
Arbitrum Retains a Substantial L2 Market Share
As per CryptoCrypto’s examination of Arbitrum’s dominance in the Layer 2 (L2) realm, the platform continues to hold a commanding position.
Data from L2 Beats highlights Arbitrum controlling over 39% of the L2 TVL, with an excess of $13 billion locked within the ecosystem.
Nevertheless, despite its commendable performance in network engagement and supremacy in the L2 domain, ARB’s price fails to reflect these positive metrics.
The platform’s robust operational activity has not translated into a positive price trajectory for the ARB token, which grapples with subdued price movements and a substantial percentage of holders in a loss-making scenario.