Arbitrum's ETH Accumulation Boosts L2 Ecosystem Position Robinhood Integration Drives 18% ARB Gain

Arbitrum has recently made significant strides in the Layer 2 (L2) ecosystem by accumulating 22,009 ETH, positioning itself as a major player alongside other top institutions that are actively diversifying their reserves with Ethereum. This move places Arbitrum in a league with prominent entities such as the staking platform Lido and the lending protocol Aave. Tom Wan, Head of Data at Entropy Advisors, noted that Arbitrum is the ‘most ETH-aligned L2,’ addressing criticisms that L2s extract value from Ethereum L1 without contributing back. Arbitrum's ETH accumulation is seen as a counter to this criticism, demonstrating a commitment to the Ethereum ecosystem.

Arbitrum's recent integration with Robinhood has further boosted its profile. Robinhood selected Arbitrum as a temporary settlement layer for its on-chain stocks, making tokenized U.S. equities accessible to European users. This partnership has brought new users to the L2, as indicated by the increase in new wallets and transaction counts. The daily active address on Arbitrum recovered from 800,000 to over 1 million, while the transaction count remained high, suggesting both new retail participation and continued activity from large players. Arbitrum has also dominated stablecoin balances and monthly inflows, with Ethereum seeing $9.7 billion in inflows and Arbitrum following with $1.5 billion.

Following the Robinhood update, Arbitrum's native token ARB initially saw a 5% jump, which later extended to an 18% daily gain. However, the bullish momentum was short-lived as ARB erased all gains and returned to the support zone around $0.30. Trading volumes also declined, as indicated by the On-Balance Volume (OBV) metric. Without a recovery in volumes and buying pressure, it may be challenging for bulls to maintain the $0.30 support level.