Arbitrum Faces Challenges Despite Chain Growth
Arbitrum’s (ARB) positive chain growth over the last 24 hours has not been enough to trigger a price surge. While the network recorded the highest netflow among layer-one blockchains, surpassing peers like Solana and Sui Network, market sentiment remains largely bearish. With little sign of an imminent rally, ARB’s price has declined despite bullish activity on the chain.
Price Stagnation Despite Surge in Chain Activity
After briefly reclaiming a price above $1, supported by a 26.19% weekly rally, ARB has dropped by 0.50% in the last 24 hours. This price decline persists even though there has been significant bullish activity on the chain.
According to analysis by AMBCrypto, the recent downturn can be attributed to declining interest from both retail and whale investors. Despite impressive chain activity, ARB’s price remains stagnant.
Arbitrum Records Impressive Chain Netflow
Data from Artemis reveals that Arbitrum, home to the ARB token, saw a notable spike in Chain Netflow over the past 24 hours, reaching $16.6 million. This figure surpassed well-known layer-one blockchains like Solana and Sui Network.
Chain Netflow measures the net movement of assets into and out of a blockchain. When the netflow is positive, it typically signals increased network activity. Despite this surge, ARB’s price has yet to see any significant upward movement, underscoring the current market struggles.
Traders Retreat as Bearish Sentiment Prevails
Over the past 24 hours, active addresses (AA) in the Arbitrum network have decreased sharply, from 28,000 to 14,950—a significant drop of over 50%. This decline indicates waning interest among market participants, with fewer traders engaging in the market.
However, on a weekly basis, AA has seen a slight increase of 0.54%, indicating a minor rebound in engagement over a broader timeframe. Still, this uptick does little to counter the bearish market sentiment.
- Active addresses fell from 28,000 to 14,950 in the last 24 hours.
- Weekly increase of 0.54% in active addresses shows a minor rebound.
Bearish Dominance Reflects in Market Indicators
Further analysis by AMBCrypto highlights the dominance of bearish sentiment in the market. According to the Bull and Bear indicators from IntoTheBlock, bearish addresses currently outnumber bullish ones—139 to 130. When bearish activity outweighs bullish, the likelihood of price declines increases.
This bearish sentiment has been mirrored by reduced whale activity, as larger investors retreat from the market, further reinforcing the downtrend.
Whales Withdraw from the Market
In the last 24 hours, the number of large transactions involving ARB has decreased to 401, with a total volume of 120.59 million ARB. This drop in whale activity suggests a lack of accumulation, which often precedes upward price movements.
With both whale and retail interest on the decline, ARB faces further downward pressure in the market.
- Large transactions dropped to 401 in the last 24 hours.
- Total volume of large transactions: 120.59 million ARB.
- Lack of whale accumulation suggests further price declines.
Conclusion: ARB’s Short-Term Outlook Remains Bearish
Despite positive chain activity and high netflow, ARB’s price continues to struggle, primarily due to declining investor interest. Both retail traders and whales are retreating from the market, reinforcing bearish sentiment. Until these trends change, Arbitrum may face continued downward pressure.