Whales buy Arbitrum (ARB) after Robinhood US listing

Source Cryptopolitan

Arbitrum (ARB) is getting additional activity after news of a new listing on Robinhood. The brokerage will add a spot market for ARB, which will be available for US-based investors. 

Arbitrum (ARB) bounced from its lows after news of its addition to Robinhood US. ARB is already available for EUR swaps, but the addition to the US platform will attract users. On-chain data revealed the new listing, exposing the coin to Robinhood US, which has 11M monthly active users. 

After the news, ARB bounced from its recent lows to trade at $0.42, a 15% price jump. ARB also set expectations for a bigger breakout, which is easier from its low position. Traditionally, Robinhood listings have caused assets to rally, though now ARB faces headwinds from the overall market weakness.

Previously, Robinhood has used Arbitrum for its Web3 settlements, tapping low-cost transactions. However, ARB was only available for users outside the US, with an active EUR-based market. ARB is considered one of the ‘Made in USA’ tokens, and aims to grab a bigger market share. After the shift in focus from Solana memes, previously hot networks are once again gaining traction, with Arbitrum rebuilding its DeFi space.

ARB remains one of the key L2 assets, with robust turnover and listings on centralized exchanges. However, the token has been pressured for years by unlocks and selling, as it currently trades near an all-time low. 

The listing is expected to trigger growth for ARB with a wider user base. ARB is currently held by over 46,000 wallets on Ethereum and 1.4M wallets on the Arbitrum chain. For others, the token listing is a top signal, as Arbitrum is now considered a relatively older asset. 

The biggest problem for ARB is that 42% of its tokens are still unlocked, and will be added to the market based on a linear schedule. ARB is one of the early airdrop tokens, which also had a significant initial VC allocation. This led to ongoing price pressure, with ARB only briefly rising above $2 during the early 2024 bull market. However, at this price range, ARB also looks like a favorable entry point. 

Whales return for ARB

Whales are returning to ARB after the asset fell toward $0.35. Coinciding with the announcement of the Robinhood listing, the token saw significant activity on Binance. One whale order spent $1.5M in USDT to acquire 3.78M ARB. 

In addition to whale-sized intervention, the market maker Wintermute became more active with ARB. In the immediate aftermath of the Robinhood US listing, Wintermute sent more ARB to Uniswap liquidity pools and some of its ARB reserves to Binance. 

ARB retains $222.6M in daily trading volumes, with $40M in its ARB/USDT centralized pair. Despite its leading status among L2 chains, the coin is currently considered undervalued. Arbitrum also produces up to $700K in weekly revenues while paying optimized fees to Ethereum. 

Arbitrum is still the leader in stablecoin liquidity

Arbitrum remains the leader in stablecoin liquidity, as inflows started again. The network carries $5.3B in total stablecoin liquidity, which supports its collection of DeFi apps. Arbitrum continues to be ahead of Base, which is still growing its inflows of USDC. 

Arbitrum also recovered from the recent outflows, where for the past quarter the chain saw the biggest withdrawals. In the past month, liquidity is returning to Arbitrum. Based on Artemis data, Arbitrum drew in over $723M in netflow, out of $1.7B inflows.

Arbitrum (ARB) became the leader in net flows, after previously losing liquidity.
Arbitrum (ARB) became the leader in net flows after previously losing liquidity. | Source: Artemis

Arbitrum even surpassed Ethereum in liquidity gains as traders returned to a known and reliable network. In addition to the stablecoins, Arbitrum carries $2.9B in locked liquidity. The chain’s most active apps include Aave V3 and Uniswap, offering access to top Ethereum apps at a lower cost. 

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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