ARB experienced a rapid rebound from its lower levels, with a gain of over 30% within 24 hours, rising to around $0.11 at one point. As prices recovered, trading volume and derivatives positions also increased accordingly, and the market began to pay renewed attention to the ecological progress of this Layer2 network as well as the enthusiasm for short-term trading.
Robinhood Chain Activity Level Increases
One of the factors driving this round of increase is the increase in Robinhood Chain trading activities, which are based on Arbitrum Orbit technology. The article states that the number of transactions on this chain, DEX activity level, and network revenue have all seen increases recently, with transaction fees exceeding one million US dollars in the past 24 hours.
According to the revenue sharing model of Arbitrum, Robinhood Chain will reinvest 10% of its protocol income back into the broader Arbitrum ecosystem. This enhances the activity of the market and is seen as direct support for the fundamentals of Arbitrum.
Elara Upgrade Brings New Catalyst
Another factor that has attracted market attention is that Arbitrum recently enabled an upgrade to ArbOS Elara. This upgrade covers Arbitrum One and the dedicated chains based on Arbitrum, adding features such as protocol layer compliance filtering and customizable priority fees.
The article also mentions that Elara has improved the efficiency of basic rate adjustment for Arbitrum One, and increased the smart contract capacity of Stylus. Such infrastructure updates have strengthened market expectations for the scalability of its on-chain ecosystem.
Derivatives position building drives up volatility
In addition to ecological and technical factors, derivatives market data is also strengthening simultaneously. The article shows that the number of ARB open contracts has risen to approximately 88.1 million US dollars, indicating that new positions have entered the market; the shift in funding rates towards a more bullish bias also reflects a warming market sentiment.
However, the recent rise has also been accompanied by a larger scale of short covering, which means that part of this upward movement is due to short covering rather than entirely driven by new long positions. If prices cannot continue to break through in the future, the increase in leveraged positions may also amplify any subsequent pullbacks.
September 23rd is worth paying attention to.
In the short term, the market is still focusing on the unlocking of ARB tokens on September 23. It is expected that approximately 139 million ARB tokens will enter circulation at that time, accounting for about 1.4% of the total supply. If some holders choose to cash in their profits, it may put additional pressure on the price.
Overall, the rebound led by ARB has improved market sentiment, but its sustainability in the future still depends on whether the ecosystem's activity can continue, as well as whether the newly added circulating chips will bring about more significant selling pressure.
