ARPA +140.52% in 24 Hours Amid Protocol Upgrade and Network Activity Surge

ARPA, the blockchain-based privacy layer token, experienced a dramatic price surge of 140.52% within a single 24-hour period on September 2, 2025, reaching $0.02112. This sharp increase followed the activation of a protocol-level privacy enhancement update, which improved on-chain data encryption and transaction obfuscation. The update, announced earlier in the week, was widely anticipated by the ARPA community and developers. Network activity metrics also showed a concurrent 42% increase in daily active nodes and a 21% rise in off-chain data requests processed through the ARPA network, indicating growing adoption of its decentralized privacy infrastructure.

The short-term volatility reflects broader uncertainty in the cryptocurrency space, though ARPA’s recent technical developments distinguish it from more speculative assets. The protocol update, which enables more complex data privacy use cases, is considered a foundational step toward ARPA’s long-term vision of becoming a core infrastructure layer for Web3 applications. Notably, the update included a new cross-chain privacy relay, which allows for encrypted data sharing across multiple blockchains, expanding ARPA’s utility in multi-chain ecosystems.

Technical indicators from recent on-chain data suggest that ARPA’s recent rally has been supported by increased on-chain liquidity and reduced sell pressure. The token’s 50-day and 200-day moving averages have continued to diverge, with the 50-day line moving above the 200-day, a bullish crossover that historically has been a precursor to sustained price momentum in other digital assets. However, these indicators remain within a broader context of long-term bearish trends, as ARPA has dropped 32.23% over one month and 5,532.4% over one year, according to recent price records.

Backtest Hypothesis
A proposed backtesting strategy aims to evaluate the effectiveness of trading signals derived from ARPA’s recent on-chain data and technical indicators. The strategy is built around identifying key on-chain events—such as node activity spikes, protocol upgrades, and liquidity changes—and pairing them with momentum-based technical signals like the 50/200-day moving average crossover. The hypothesis assumes that ARPA’s price movements are partially predictable when such on-chain activity is aligned with bullish technical patterns. The strategy would involve entering long positions upon confirmation of a positive on-chain event and a technical crossover, with a stop-loss set at a trailing 7% of the entry price to mitigate risk from sudden volatility.