Cryptocurrencies

    Arbitrum (ARB) surges as Ethereum ETF launch draws near

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    Arbitrum (CRYPTO:ARB), the native token of the Layer 2 scaling solution, has experienced a notable price increase of over 5% in the past week, driven by the upcoming launch of five spot market Ethereum (CRYPTO:ETH) exchange-traded funds (ETFs) scheduled for July 23.

    Currently trading at $0.77, ARB’s recent uptick reflects broader market optimism surrounding the ETF rollout.

    In addition to the rise in token value, Arbitrum's ecosystem has seen significant growth across various metrics.

    The total value locked (TVL) in Arbitrum’s decentralised finance (DeFi) ecosystem has surged by 10% over the past week, reaching $3.25 billion.

    This marks the highest TVL since Arbitrum’s inception in August 2021 and follows a 14% increase over the past month.

    This growth positions Arbitrum as one of the top-performing Layer 2 networks by TVL, closely trailing Solana.

    Moreover, Arbitrum has also seen a substantial increase in NFT activity.

    Sales volume for NFTs on the network jumped by 66% over the past week, totaling $1.16 million.

    This surge is attributed to a rise in both the number of NFT traders and completed sales, which increased by 49% according to CryptoSlam data.

    Despite these positive developments, the Relative Strength Index (RSI) for ARB currently stands at 51.54, suggesting a balanced market condition.

    This implies that while the token has experienced upward momentum, the market may face potential sideways trading or a slight pullback in the near term.

    Investors should watch for further developments as the Ethereum ETF launch approaches and its impact on market dynamics.

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