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In line with the recent market activity, the price of Arbitrum (ARB) has also been volatile. Despite these fluctuations, the Total Value Locked (TVL) on its network reached the highest level since the altcoin’s inception.
Current State of Arbitrum (ARB)
Between January 12 and 14, a downward trend was dominant in Arbitrum (ARB). The most significant drop occurred on January 14, with an approximate 6.7% decrease.
Following this drop, the price of Arbitrum (ARB) exhibited a volatile pattern. Moreover, despite the price fluctuations, the network’s Total Value Locked (TVL) reached an all-time high (ATH).
Despite the increase in TVL, at the time of writing, ARB’s price continued to fall, trading below $2 at $1.98, a decrease of over 3%.
On the other hand, the Relative Strength Index (RSI) value was also below the neutral zone of 50, at 36.01, indicating that ARB was moving away from a bullish outlook at the time of writing.
Are ARB Investors Pulling Back?
The funding rate specific to Arbitrum also caused concern among investors. The decrease in the rate over a few weeks indicated a waning interest among investors. Coinglass data revealed a drop in the Funding Rate from approximately 0.06% to 0.009%. At the time of writing, this value was around 0.01%.
Additionally, the Open Interest rate indicated a decline. From $340 million on January 12, Open Interest had fallen to $313 million at the time of writing. The situation with the Funding Rate and Open Interest suggested that the aggressive stance of buyers might have weakened, yet they could continue to make purchases.
Arbitrum’s TVL
According to DefiLlama, which provides data on Arbitrum’s Total Value Locked (TVL), there has been a steady increase over the past few months. The graph showed a rise after a period of decline around October and continued to rise as of today.
At the time of writing, the TVL stood at $2.61 billion, marking the highest TVL it has ever achieved. The previous peak TVL was at $2.5 billion.
