Arbitrum (ARB) has experienced a volatile price movement recently, mirroring the broader market activity. Despite this price volatility, the Total Value Locked (TVL) on its network has reached its highest level since the altcoin’s inception.
Between January 12 and 14, ARB’s price trended downwards, with the most significant drop occurring on January 14, amounting to a sharp 6.7% decline. Following this drop, the price continued to fluctuate.
Despite these fluctuations, the network’s TVL achieved an all-time high (ATH), even as the ARB price continued to fall, trading below $2 at $1.98 at the time of writing. Additionally, the Relative Strength Index (RSI) was below the neutral 50 zone, at 36.01, indicating a bearish outlook for ARB.
Investor sentiment towards Arbitrum seemed to wane as the funding rate decreased, with Coinglass data showing a drop from approximately 0.06% to 0.009%, currently at 0.01%. Concurrently, Open Interest also declined from $340 million on January 12 to $313 million, suggesting a less aggressive buying stance among investors.
According to DefiLlama, Arbitrum’s TVL has been on a steady rise over the past few months, with the current TVL at $2.61 billion, marking the highest TVL to date and surpassing the previous peak of $2.5 billion.