Why did the price of ARB fall?

Arbitrum (ARB) dropped 23.8% in the last 24 hours, falling more than the overall crypto market, which declined by 9.4%. The main reasons for this drop include:

1. Widespread market sell-off – Increased fear among investors and weakness in alternative cryptocurrencies (altcoins).
2. Impact from Hyperliquid hack – $21 million in stolen funds were moved into Arbitrum wallets, raising concerns.
3. Technical breakdown – ARB’s price fell below a key support level at $0.346, signaling further downside risk.

Deep Dive

1. Market-Wide Selling Pressure (Negative Impact)

What happened:
The entire crypto market lost $352 billion in value within 24 hours. Altcoins like ARB were hit harder than major coins like Bitcoin. Bitcoin’s market share increased to 59.4%, showing that investors moved money into what they see as safer assets.

Why it matters:
ARB’s 23.8% drop was much larger than Ethereum’s 7% decline, indicating ARB is more sensitive to market swings. With more money borrowed for trading (open interest in perpetual contracts rose 9% to $1.23 trillion), many leveraged traders likely had their positions forcibly closed, adding to the selling pressure.

2. Fallout from Hyperliquid Hack (Negative Impact)

What happened:
A $21 million hack on Hyperliquid resulted in stolen funds being transferred to Arbitrum wallets (PeckShield). Although this hack didn’t involve Arbitrum’s technology directly, it raised concerns about security risks in the ecosystem.

Why it matters:
Investors may now be more cautious about cross-chain bridges, even those not directly linked to Arbitrum. This led to a 405% surge in ARB’s trading volume to $1.05 billion, reflecting a mix of panic selling and opportunistic buying.

3. Technical Breakdown (Negative Impact)

What happened:
ARB’s price fell below a critical support level at $0.346, which is the 50% Fibonacci retracement of its 2025 price range, and also dropped below its 200-day moving average of $0.399. The Relative Strength Index (RSI) hit 25.83, indicating the coin is oversold, similar to levels seen during major sell-offs in March 2025.

Why it matters:
Automated trading systems likely triggered stop-loss orders below $0.35, accelerating the price drop. The next key support level is $0.297 (61.8% Fibonacci retracement). However, because the coin is oversold, there could be a short-term price bounce if Bitcoin’s price stabilizes.

Conclusion

ARB’s sharp decline is a result of broad market sell-offs, increased security concerns following the Hyperliquid hack, and breaking important technical support levels.

What to watch:
Can ARB stay above its 2024 low of $0.24 if market sentiment doesn’t improve? Keep an eye on Ethereum’s price, as ARB’s 30-day price movements remain closely linked to ETH, with a correlation of 0.87.

What could affect the price of ARB?

Arbitrum is navigating a mix of positive developments and challenges in its ecosystem.

1. Institutional DeFi adoption – Partnerships with BlackRock and Robinhood could increase usage (Positive)
2. DAO treasury management – $1.5 billion fund for grants and partnerships (Mixed)
3. Layer 2 competition – Rivals like Plasma and Base are gaining ground (Negative)

Deep Dive

1. Institutional DeFi Momentum (Positive Impact)

Overview: Arbitrum recently partnered with Robinhood to support tokenized stocks and with BlackRock’s BUIDL fund, positioning itself as a key connection point between traditional finance and decentralized finance (DeFi). The foundation’s new Head of Investment Strategy, Brendan Ma (source), is focused on growing these institutional relationships.

What this means: The volume of real-world assets (RWA) on Arbitrum reached $300 million in May 2025, signaling growing adoption. If traditional finance players continue to join, demand for ARB tokens—used for governance and transaction fees—could increase.

2. DAO Treasury & Tokenomics (Mixed Impact)

Overview: The Arbitrum DAO controls 4.278 billion ARB tokens, which is about 42.78% of the total supply. Starting March 2024, there is a 2% annual inflation rate. Recent decisions include allocating 450,000 ARB tokens to PancakeSwap incentives and $14 million for security audits.

What this means: Grants like the StableFlow bridge integration (source) can enhance the network’s usefulness. However, a large portion of tokens (44.47%) is held by the team and investors, which could pose risks related to token concentration.

3. Layer 2 Competition Intensifies (Negative Impact)

Overview: Plasma Network’s total value locked (TVL) jumped 17% to $6.32 billion last week, surpassing Arbitrum’s $4.07 billion. Other competitors like Base and zkSync are also vying for a share of Ethereum’s scaling market.

What this means: Arbitrum’s 24-hour transaction fees dropped 74% to 11.62 ETH in August 2025 (source). Without unique features—such as Timeboost’s $2 million revenue—Arbitrum risks losing its network advantage.

Conclusion

The future price of ARB depends on successfully growing institutional partnerships while defending against Layer 2 competitors. Technical analysis shows a price range of $0.29 to $0.42, reflecting both optimism about Arbitrum’s ecosystem and concerns about token dilution. Key factors to watch include the growth of real-world asset volumes and how effectively the DAO uses its grant funds to strengthen the network.

What are people saying about ARB?

Conversations around Arbitrum (ARB) are swinging between excitement about its technology and concerns about its price. Here’s what’s trending:

1. “Silent leader” story gaining attention – developers are impressed with the ecosystem’s steady growth
2. Price battle between $0.32 and $0.48 – traders are divided on whether ARB will break out higher or fall lower
3. Robinhood partnership rumors resurface – speculation is causing price swings

Deep Dive

1. @David__GMI: Arbitrum’s “silent leadership” is a positive sign

"Arbitrum quietly building its foundation... ApeChain is starting to grow like ‘saplings’"
– @David__GMI (2.1K followers · 18K impressions · 2025-10-08 16:38 UTC)
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What this means: This is a good sign for ARB’s long-term value. New tools like Orbit Layer 3 and Stylus, which supports multiple programming languages, are attracting developers even though the price hasn’t moved much recently.

2. @mkbijaksana: Testing resistance at $0.585 looks bearish

"ARBITRUM is testing 0.585... high chance ARB will follow ETH"
– @mkbijaksana (8.7K followers · 23K impressions · 2025-08-24 17:42 UTC)
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What this means: In the short term, this looks negative. ARB has struggled to break above $0.58–$0.60, which is causing selling pressure. However, since ARB often moves with Ethereum (ETH), a strong ETH rally could lift ARB’s price.

3. CoinMarketCap Community: Robinhood partnership rumors cause mixed reactions

"Speculation about possible partnership... HOOD shares rise over 12%"
– CoinMarketCap Analysis (30M+ monthly users · 2025-06-30 18:06 UTC)
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What this means: The news has mixed effects. A partnership with Robinhood could help bring more institutional investors to ARB. But after the rumors, ARB’s price dropped about 20%, showing traders are cautious about when or if this will happen.

Conclusion

Opinions on ARB are mixed. On one hand, developer activity and new Layer 3 projects show promise. On the other, technical indicators and broader market fears have pushed the price down 25.4% in the last 24 hours. Keep an eye on the $0.313–$0.348 price range: holding above this could mean buyers are stepping in, while falling below might test lows seen in June around $0.24. The real challenge for Arbitrum is turning these technical improvements into more users and stronger market interest, especially as liquidity in altcoins remains tight.

What is the latest news about ARB?

Arbitrum is balancing growth in its ecosystem with some market challenges, mixing positive news about partnerships with concerns about security. Here are the key updates:

1. CMC Markets Tests Arbitrum for Stock Tokenization (October 11, 2025) – A private trial using Arbitrum’s blockchain shows growing interest from big financial players.
2. Arbitrum Hires First Head of Investment Strategy (October 10, 2025) – Brendan Ma joins to help grow partnerships and manage investments.
3. Hyperliquid Hack Affects Arbitrum (October 10, 2025) – A $21 million hack highlights risks when moving assets across different blockchains.

Deep Dive

1. CMC Markets Tests Arbitrum for Stock Tokenization (October 11, 2025)

Overview:
CMC Markets teamed up with StrikeX to create digital tokens representing UK stocks on Arbitrum’s Layer 2 blockchain. This trial is one of the first times Arbitrum is used by traditional financial institutions to tokenize shares, benefiting from Arbitrum’s low fees and ability to handle many transactions quickly.

What this means:
This is good news for ARB because it shows Arbitrum can be useful in traditional finance. Tokenized stocks could lead to more trading and interest from big investors. However, wider use depends on clear regulations. (Finance Magnates)

2. Arbitrum Hires First Head of Investment Strategy (October 10, 2025)

Overview:
The Arbitrum Foundation hired Brendan Ma, who has experience at Immutable and Goldman Sachs, to lead investment efforts. His job is to build relationships with traditional financial companies and manage investments from Arbitrum’s $1.5 billion treasury.

What this means:
This is mostly positive. Strategic investments could help attract more developers and users, but success depends on how well these plans are executed. Ma’s background suggests a focus on steady, sustainable growth rather than risky moves. (The Block)

3. Hyperliquid Hack Affects Arbitrum (October 10, 2025)

Overview:
A $21 million hack on Hyperliquid involved stolen funds moving through Arbitrum wallets. The hack happened because of leaked private keys, not because of a flaw in Arbitrum’s technology, but it highlights the dangers of transferring assets between different blockchains.

What this means:
This is a negative development in the short term, as security worries might make some investors cautious. However, since Arbitrum’s network itself was not hacked, the damage to its reputation is limited. (Yahoo Finance)

Conclusion

Arbitrum is seeing both promising growth and some security challenges. Partnerships like the one with CMC Markets show its technology is gaining real-world use, but incidents like the Hyperliquid hack remind users to be careful with their own security. With new leadership and a large investment fund, Arbitrum has the tools to turn its technical strengths into long-term success.

What is expected in the development of ARB?

Arbitrum’s roadmap highlights key goals in governance, ecosystem growth, and technical improvements.

1. Security Council Election (November 2025) – On-chain voting to replace half of the 12-member council that manages protocol security.
2. Institutional DeFi Expansion (Q4 2025) – Building partnerships with traditional finance leaders like BlackRock and Robinhood to bring tokenized assets to Arbitrum.
3. Orbit Chain Scalability (2026) – Launching customizable Layer 3 chains to improve interoperability and scalability.
4. Enhanced Account Abstraction (Q1 2026) – Expanding features for gasless transactions and more flexible wallets through EIP-7702 integration.

Deep Dive

1. Security Council Election (November 2025)

Overview:
Arbitrum’s decentralized autonomous organization (DAO) holds elections twice a year to refresh half of its Security Council, which has 12 members. This council is responsible for overseeing emergency upgrades and fixing vulnerabilities. Critical decisions require agreement from at least 9 of the 12 members (Arbitrum DAO FAQs).

What this means:
This is a routine governance event that helps keep the protocol secure and stable. While it’s neutral for ARB’s price, low voter turnout could cause short-term price swings since about 58 million ARB tokens are usually staked for voting.

2. Institutional DeFi Expansion (Q4 2025)

Overview:
Arbitrum’s new Head of Investment Strategy, Brendan Ma, is focusing on partnerships with big traditional finance firms like BlackRock and Franklin Templeton. These partnerships aim to bring real-world assets (RWAs) onto Arbitrum’s platform in tokenized form. Robinhood recently launched tokenized stock trading on Arbitrum in the EU, marking a significant step (The Block).

What this means:
This is positive for ARB. More institutional involvement could increase the total value locked (TVL) on Arbitrum, which currently stands at $4.07 billion, and boost fee revenue, which grew 23% year-over-year to $1.43 million per week as of June 2025.

3. Orbit Chain Scalability (2026)

Overview:
Arbitrum Orbit lets developers create Layer 3 (L3) chains on top of Arbitrum’s existing Layer 2 networks (Arbitrum One and Nova). There are already over 40 L3 chains live, with more than 100 in development. The DAO plans to make it easier to launch these chains and improve tools for communication between chains (Arbitrum Foundation).

What this means:
This is good news for ARB. Expanding Orbit chains could strengthen Arbitrum’s position in the modular blockchain space. However, competition from other platforms like Polygon and zkSync could affect adoption.

4. Enhanced Account Abstraction (Q1 2026)

Overview:
After the successful ArbOS 40 “Callisto” upgrade in June 2025, Arbitrum plans to further integrate EIP-7702. This upgrade allows regular user accounts to function like smart contracts, making wallet management easier and enabling gasless transactions (NullTX).

What this means:
This is promising for ARB. A better user experience could attract over 100,000 new active users (currently around 371,000). However, this depends on decentralized apps (dApps) adopting the new account abstraction standards.

Conclusion

Arbitrum’s roadmap balances technical improvements like account abstraction and Orbit chains with ecosystem growth through traditional finance partnerships and grants. The upcoming Security Council election and institutional DeFi expansion are key near-term events. While ARB’s price has dropped 22% year-to-date, rising TVL and fee revenue could help stabilize it. Keep an eye on DAO proposals and institutional activity for signs of momentum.

What updates are there in the ARB code base?

Arbitrum is making big improvements with important upgrades and security efforts.

1. ArbOS 50 Dia Proposal (September 2025) – Matches Ethereum’s Fusaka upgrade by adding new cryptography features and making transactions more efficient.
2. $14M Audit Subsidy Program (July 2025) – Provides funding for third-party security checks to keep the ecosystem safe.
3. ArbOS 40 Callisto Upgrade (May 2025) – Introduces advanced features like account abstraction and better signature support for more powerful decentralized apps (dApps).

Deep Dive

1. ArbOS 50 Dia Proposal (September 2025)

Overview:
This upgrade is a major update designed to work closely with Ethereum’s upcoming Fusaka improvements. It makes transactions more efficient and adds new cryptographic tools for better security and flexibility.

Key updates:

• EIP-7210: Supports a new type of cryptographic curve (secp256r1) useful for Internet of Things (IoT) devices and other specialized signatures.
• EIP-7623: Sets a gas limit of 32 million per transaction, which is twice Ethereum’s current limit, helping balance network speed and stability.
• Constraint-Based Pricing: Prepares the system to adjust transaction fees dynamically based on how much computing power or storage is used (this feature isn’t active yet).
• Native Mint/Burn: Lets certain chains delegate the creation and destruction of gas tokens to bridges connecting different blockchains (this is turned off for Arbitrum One and Nova).

What this means:
This upgrade is positive for ARB because it improves compatibility with Ethereum, gives developers more tools, and sets the stage for more scalable and flexible fee systems. Users can expect faster and more efficient transactions, especially benefiting IoT and decentralized physical infrastructure networks (DePIN).
(Source)

2. $14M Audit Subsidy Program (July 2025)

Overview:
The ArbitrumDAO approved a $14 million fund (30 million ARB tokens) to help pay for security audits of early-stage projects. This helps reduce risks and improve overall ecosystem safety.

Key details:

• Audits are done by trusted firms like OpenZeppelin and Certora.
• Focuses on promising projects and major upgrades to protocols.

What this means:
This program is good news for ARB holders because it encourages safer app development, attracts more developers, and lowers the chance of hacks or bugs. Users benefit from more reliable and secure apps built on Arbitrum.
(Source)

3. ArbOS 40 Callisto Upgrade (May 2025)

Overview:
This upgrade, approved by the community, added features that align Arbitrum more closely with Ethereum and improve user experience.

Key features:

• EIP-7702: Allows regular wallets to temporarily act like smart contracts, enabling features like gasless transactions.
• BLS Signatures: Lowers gas costs for verifying multiple signatures at once, which helps with privacy-focused apps and zero-knowledge proofs.

What this means:
This upgrade benefits ARB by making it easier for users to interact with the network (for example, recovering wallets) and reducing costs for privacy-enhanced applications. This makes Arbitrum more attractive to developers and users alike.
(Source)

Conclusion

Arbitrum is evolving with important protocol upgrades (ArbOS 50 Dia), significant security investments ($14M audit funding), and closer alignment with Ethereum (ArbOS 40). These changes aim to make Arbitrum a more scalable, secure, and versatile Layer 2 solution. The question now is whether the Fusaka-aligned upgrades will speed up adoption of Arbitrum Orbit chains.