After being trapped in a correction mode in the past three months, Arbitrum (ARB), a leading Ethereum-based layer two (L2) scaling solution that has facilitated more than $12.5 billion in bridged TVL, has signaled an inevitable rebound in the coming month. With a fully diluted valuation of about $10 billion, the mid-cap altcoin has established a solid support level of around $1 after dropping 33 percent in the past month.
Backed by reputable crypto venture capital firms and web3 developers, Arbitrum has grown to a top-tier scaling solution. Moreover, the recent Ethereum network upgrade dubbed Dencun dramatically reduced the transaction fees for the layer-two networks.
Arbitrum Rising On-chain Activity
Having attracted dozens of reputable Web3 projects on the Ethereum ecosystem—led by Pendle yield, AAVE V3 lending, GMX derivatives, and Uniswap—the Arbitrum network has resultantly registered heightened on-chain activity.
According to market data provided by IntoTheBlock, the number of daily transactions on the Arbitrum network has recently increased significantly to about 2 million, up from 1 million in early March.
ARB Price Midterm Targets
Having established itself as a leader in the Ethereum scaling solution, ARB demand is bound to outshine the supply. Currently, only a quarter of ARB’s max supply is in circulating supply.
According to a popular crypto analyst Ali Martinez, the TD Sequential indicator has presented a buy signal on the weekly ARB price against the U.S. dollar. As a result, the crypto analyst expects ARB price to register at least four bullish weekly candlesticks.
In the short term, ARB price could reach $1.25, which coincides with the 0.618 daily Fibonacci Extension. A successful breakout on this resistance level will pump the ARB price towards $1.5, which coincides with the 1.618 Fibonacci Extension.
