Arbitrum’s native token, ARB, has experienced a sustained two-year price decline despite significant growth in its network activity, particularly in real-world asset tokenization. While the market capitalization of tokenized stocks on Arbitrum surged 476% to $173 million, the altcoin’s price faces persistent selling pressure from upcoming token unlocks. Technical indicators suggest the token may be forming a price floor near the $0.07 zone, even as broader market interest wanes, evidenced by a drop in aggregate open interest.
Arbitrum [ARB] has been in a strong downtrend for two years, despite the chain’s performance. The altcoin, however, appears to be forming a bottom at $0.07 as tokenization on the chain gains pace.
The market cap of tokenized stocks on Arbitrum by issuer grew to $173 million, a 476% increase. Data shows that Reality accounted for $135 million, while Robinhood, Dinari, and xStocks were capped at $24 million, $13.9 million, and $3.8K, respectively.
Over the past ninety days, the market cap of the top 10 tokenized stocks surpassed the $100 million mark. They included Micron, Nvidia, SanDisk, SpaceX, Strategy, Tesla, and Intel.
Moreover, the Arbitrum Platform has the highest RWA count at 3,208, making it the first chain to surpass 3,000, according to rwa.xyz. It is followed by Solana, Ethereum, Avalanche, and BNB Chain.
Despite the momentum in tokenization, bearish sentiments did not lurk. In addition to the daily token unlock of 479.06K ARB, a larger unlock is approaching. On the 16th of August, Arbitrum will unlock 93.19 million ARB tokens worth $7.41 million.
The 4-hour chart shows a structure that is in transition at around the $0.07 zone. ARB’s price is making higher lows alongside the RSI Divergence which was at 50.99, a typical institutional accumulation pattern.
As big players build positions, the broader market is fading. The Aggregate Crypto Open Interest dropped from $64.5 million to $46.63 million, indicating that the broader market was losing interest in the token.
The price of Arbitrum remains in a downtrend due to the existing market structure and tokenomics. The growth in tokenization may help speed up the formation of a bottom between the $0.07 and $0.09 zones.
