Arbitrum [ARB] delivered a 28% gain in the last day as of writing, as the blockchain itself became a central stage for capital movement across the market while retaining most of it.
While there’s a clear sign that the bulls are active in the market, the impact on ARB came from the movement of bridge assets across chains, showing that Arbitrum dominated in netflow with $1.6 billion retained in value.
To put this into perspective, bridge asset netflow tracks capital moving across multiple chains to show how much enters and leaves each chain.
When the netflow is positive, like in this case, it suggests that most of the capital settled on the chain, a positive factor that can impact price.
At the time of writing, Arbitrum has led other chains in terms of netflow over the last day, ahead of Ethereum [ETH] and Robinhood, which followed, respectively, in terms of flow. Importantly, this type of flow needs to be maintained if there’s going to be a continued rally in the near term.
However, bridge asset movement is just one part of the broader factors that influenced the rally. AMBCrypto found other catalysts that have also impacted the market.
Investors committing to a long-term rally
Investors are showing signs of interest in ARB as a whole, with the total value locked (TVL) tracking the health of the chain based on deposited and locked capital.
Between the 19th of August and the time of writing, roughly 13 days have seen its TVL increase by $170 million, reaching a new level of $1.412 billion.
In simple terms, TVL grew by an average of $13.07 million daily. Although this is moderate, it shows there’s strong commitment to the rally.
Analyzing the chain, activity across decentralized exchanges has also been seeing a good level of activity. Data from DeFiLlama shows that after volume declined steadily between the 21st and 28th of August, there has been a pickup in activity.
Data shows that from the 29th, DEX volume grew by over 151%, reaching a high of about $208.72 million. A surge in volume is particularly helpful to ARB, as it increases usage, which ultimately feeds into demand in the long run.
Yet, it is important to note that this surge in activity reflects usage, not user growth, as daily active traders remained at about 106,500.
Watch the perpetual market
On-chain activity only tells one part of the picture, which is why it’s important to analyze what’s happening off-chain across exchanges, a key trading venue for the native ARB token.
CoinGlass data shows that there has been a massive inflow of capital into the perpetual market, which aligns with the rise in ARB.
The Open Interest (OI) of ARB, which tracks the capital value of contracts in an asset, rose by 65%, reaching $169 million. When compared to the Funding Rate of 0.0055%, the data revealed that the majority of market flow, as well as existing capital, was positioned long.
Final Summary
- Arbitrum retained $1.6 billion in bridge asset netflow as ARB posted a 28% gain in the last day.
- Rising TVL, DEX volume, and OI point to stronger demand, but daily active traders remain below August highs.
