Arbitrum Value Soars 30% After Ethereum ETF Approval

• Ethereum ETF approval boosts Arbitrum activity by 5%, adding 100,000 users.
• ARB price jumps over 30% in a week, trading volume up 93%.
• Arbitrum’s bullish trend may continue if price stabilizes above $1.29 resistance.

After an Ethereum exchange-traded fund (ETF) was approved, Arbitrum’s activity increased by 5% within 24 hours, bringing 100,000 additional users to the service. This increase drove the ARB price to surpass the $1.20 level, representing a more than 30% rise over the course of a week, from $0.9757 to $1.2712.

Furthermore, Arbitrum’s daily trading volume experienced a significant jump, escalating by more than 93% to reach $829 million.

As the investment community gravitated towards the Ethereum platform, Layer-2 solutions like Arbitrum reaped the benefits of this change in investor attitude. The sanctioning of an Ethereum-based ETF has had repercussions not only for Arbitrum but also prompted a reorganization within the wider digital currency market. Ethereum’s primary competitors, such as Solana and Cardano , saw a reduction in interest while projects associated with Ethereum experienced a surge.

Is a New Peak on the Horizon for Arbitrum (ARB)?

Arbitrum has shown signs of a bullish trend in May, recovering from a downturn that began in mid-March. Its price climbed from $0.94 to $1.27, propelled by a rise in transaction volume and network utilization. With the number of active wallets reaching a new peak of 1.1 million and ARB holders climbing to 1.5 million, the future looks promising for Arbitrum.

At present, Arbitrum’s price is fluctuating between the resistance levels of $1.21 and $1.27. To maintain the upward trajectory, the price must surpass the $1.29 threshold and stabilize in the $1.30 range. Conversely, a drop below $1.20 could indicate a downward trend, potentially causing ARB to fall to $1.914, with the possibility of further slumps to $1.1539.

In summary, the prospects for Arbitrum are favorable, bolstered by a growth in user engagement and advantageous market dynamics following the approval of the Ethereum ETF.