Arbitrum Gains Momentum as Robinhood Expands to L2

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• Robinhood’s expansion into Arbitrum could unlock major RWA and DeFi growth.
  
• Short-term activity metrics are down, but long-term fundamentals remain strong.
  
• Technical indicators show potential for a bullish ARB reversal.

Arbitrum (ARB) is navigating a mixed market environment, balancing steady long-term ecosystem expansion with short-term volatility. As one of Ethereum’s leading Layer-2 networks, the chain has continued to scale despite recent weakness in on-chain metrics. Now, Robinhood’s growing institutional presence may provide a key catalyst for renewed momentum.

On-Chain Growth Remains Strong Despite Short-Term Declines

Since 2022, activity on the Arbitrum network has expanded significantly, driven by rising DEX participation and deeper liquidity. Decentralized exchange volume surged roughly sevenfold over this period, recently surpassing $647 billion. Meanwhile, the chain’s Total Value Locked (TVL) rose to a peak of $8.18 billion before correcting to $6.23 billion amid broader market softness.

Stablecoin supply on Arbitrum has also increased, climbing to $4.05 billion over the past week—an encouraging sign for liquidity. However, on a shorter timeframe, key activity indicators appear pressured. Active addresses slipped from just over 1 million to around 596,000 week-over-week, while transactions dropped nearly 1.5x to 8.55 million. These shifts help explain ARB’s muted price performance over the past month.

Robinhood’s Expansion Could Spark a Reversal Trend

Despite the decline in user activity, technical indicators show potential for a bullish reversal. ARB’s price structure remains in a descending channel, yet sellers have struggled to drag the token back to its lower demand zone—suggesting underlying strength. A bullish divergence in the RSI supports this view, even as CMF and RSI remain below neutral.

The bigger story, however, is Robinhood’s strategic expansion into Arbitrum. The brokerage plans to bring its 800+ European tokenized equities to the L2 chain, aiming for full DeFi interoperability by 2026. With over 23 million users, Robinhood’s integration could meaningfully expand Arbitrum’s addressable market, particularly within Real World Assets (RWAs).

Also Read: Arbitrum Metrics Surge as ARB Price Eyes Rebound

Currently, Arbitrum hosts $490 million in tokenized RWA TVL and a $1.02 billion RWA market cap. Both metrics could accelerate as institutional platforms like Robinhood onboard new user flows.

While short-term activity remains choppy, Arbitrum’s long-term fundamentals continue to strengthen. With institutional adoption accelerating and a potential trend reversal forming, ARB may be positioning itself for a more decisive recovery once market conditions improve.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.