Arbitrum TVL Hits YTD High as Rising Ethereum Activity Fuels Layer-2 Demand

Arbitrum’s decentralized finance (DeFi) total value locked (TVL) has reached a year-to-date high of $3.39 billion. 

The growth comes as increased activity on the Ethereum network—fueled by rising trading activity—spills over to Layer-2 solutions (L2s) like Arbitrum. 

Arbitrum Sees Record Liquidity Amid Ethereum Network Uptick

According to DeFiLlama, Arbitrum’s TVL has reached a year-to-date high of $3.39 billion, climbing steadily over the past four weeks.

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Arbitrum TVL. Source: DefiLlama

A rising TVL indicates greater liquidity and usage on a network. It suggests that more capital is being locked into smart contracts for trading, lending, or other decentralized finance activities. 

For Arbitrum, its rising user demand mirrors Ethereum’s recent network activity. According to Artemis, Ethereum’s daily active address count has surged 33% over the past few weeks, with transaction volume up 10%. 

Ethereum Network Activity. Source: Artemis

When Ethereum experiences a rise in user demand like this, much of the activity spills into L2s. These networks provide faster transaction times and lower fees, attracting users who want to avoid congestion on the main Ethereum chain.

As a result, L2s like Arbitrum often see increased liquidity and engagement whenever Ethereum experiences heightened activity.

ARB Rockets as Market Interest Heats Up

At press time, ARB trades at $0.54, climbing by 12% in the past 24 hours. During that period, its trading volume is up by 155% and currently totals $1.48 billion.

ARB Price and Trading Volume. Source: Santiment

When an asset’s price and trading volume climb simultaneously, it signals strong market interest and bullish sentiment. 

ARB’s rising price shows that demand outpaces supply, while its high trading volume confirms that the movement is backed by significant participation rather than thin liquidity. This trend often attracts more traders and investors, and could drive further gains for ARB in the short term. 

Further, the bullish crossover of ARB’s Moving Average Convergence Divergence (MACD) setup supports this bullish outlook. As of this writing, the token’s MACD line (blue) rests above its signal line (orange), confirming the buy-side pressure.

ARB MACD. Source: TradingView

Moreover, the histogram bars that make up the MACD indicator have been gradually growing since August 6, with the green bars expanding in size. When this happens, it suggests that the upward trend is gaining strength.

Can Bulls Push ARB Toward $0.74?

Sustained ARB accumulation could drive its price toward $0.62. A successful breach of this resistance level could propel ARB’s price toward $0.74, a high it last reached in January.

ARB Price Analysis. Source: TradingView

However, if selloffs begin, the altcoin’s price risks plunging to $0.45.