Why did the price of ARB fall?

Arbitrum (ARB) dropped 0.68% in the last 24 hours, underperforming the overall crypto market, which rose slightly by 0.1%. The main reasons for this include:

1. Security Issue – A $395,000 hack on Arbitrum’s FutureSwapX contract raised concerns about risks in decentralized finance (DeFi).
2. Technical Resistance – ARB couldn’t stay above important price levels, leading to more selling.
3. Market Mood – Neutral sentiment across crypto and low trading activity made the price drop worse.

Detailed Analysis

1. Security Issue (Negative Effect)

What happened: On January 10, a $395,000 exploit was found in Arbitrum’s FutureSwapX contract (BlockSec). Although the amount is relatively small, it exposed weaknesses in contracts that aren’t open source.

Why it matters: Hacks like this often cause short-term panic selling, especially when trading volumes are low. Arbitrum still holds a strong position with $10.7 billion in total value locked (TVL) and is known as a secure Layer 2 solution, but this incident likely scared some retail investors.

What to watch: Look for FutureSwapX’s official response and whether similar issues appear in other projects.

2. Technical Resistance (Mixed Effect)

What happened: ARB couldn’t maintain its price above the 23.6% Fibonacci retracement level at $0.214. The 7-day simple moving average (SMA) at $0.2135 acted as a ceiling. The Relative Strength Index (RSI) at 51 shows neutral momentum, while the MACD histogram (+0.0018) hints at a possible upward trend.

Why it matters: Traders who use technical analysis likely sold when ARB hit resistance, adding to the downward pressure. However, the 30-day SMA at $0.1988 offers nearby support, which may prevent a bigger drop.

What to watch: If ARB closes above $0.214, it could signal a price rebound. But if it falls below $0.20, it might test the 2025 low of $0.1723.

3. Market Mood & Liquidity (Neutral Effect)

What happened: The overall crypto fear/greed index is neutral at 40. Trading volume across the market dropped 56% in 24 hours, and ARB’s own volume fell 49% to $50.6 million.

Why it matters: Low liquidity made ARB’s price more sensitive to negative news. Since the broader market was mostly flat, there was little positive momentum to counteract the selling pressure.

Conclusion

ARB’s recent price drop is a combination of technical selling and concerns about the FutureSwapX exploit, along with a generally muted market mood. While Robinhood’s move to support Arbitrum (CoinMarketCap) is a positive long-term factor, short-term traders are focusing on managing risk.

Key points to watch: Will ARB hold the $0.20 support level? And will the Arbitrum DAO take proactive steps to address security issues?

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What could affect the price of ARB?

Arbitrum is balancing between growing interest from big investors and some ongoing risks related to its token setup.

1. Robinhood Partnership (Positive) – Robinhood’s use of Arbitrum’s Layer-2 could increase activity.
2. DAO Governance Challenges (Mixed) – Managing funds and low voter turnout could affect decentralization.
3. Competition from Other Layer-2s (Negative) – Rivals like Base and zkSync are challenging Arbitrum’s lead.

In-Depth Look

1. Robinhood’s Layer-2 Development (Positive Impact)

What’s happening: Robinhood is building a special Ethereum Layer-2 on Arbitrum to support tokenized stocks, with plans to add real estate and private equity later. They already use Arbitrum One for over 2,000 tokenized assets, which will move smoothly to the new system. The public launch is expected in early 2026.

Why it matters: Robinhood has over 14 million users. Bringing them onto Arbitrum could increase transaction activity and total value locked (TVL), which usually helps ARB’s price (Robinhood). However, it’s unclear how much revenue ARB will earn since fees are paid in Ethereum (ETH).

2. DAO Governance and Token Unlocks (Mixed Impact)

What’s happening: The Arbitrum DAO controls a $1.8 billion treasury and has approved more than 60 proposals, but only about 35% of token holders vote. Starting March 2026, about 1.2 billion ARB tokens (12% of the total supply) will unlock each year.

Why it matters: Good governance, like the Arbitrum Audit Program, can improve security and keep developers engaged. But low voter participation and yearly token unlocks (worth roughly $250 million at current prices) could dilute value if demand doesn’t keep up.

3. Growing Competition Among Layer-2s (Negative Impact)

What’s happening: In 2025, Base surpassed Arbitrum in daily users (1 million vs. 250,000), and zkSync’s “Atlas” upgrade cut fees by 40%. Arbitrum’s share of total value locked among Layer-2s dropped from 58% to 43% in the second half of 2025.

Why it matters: Competition on fees and developer rewards could squeeze Arbitrum’s profits. Keeping major projects like GMX (which generates $500,000 in weekly revenue) is key to avoiding a split in liquidity (DefiLlama).

Conclusion

Arbitrum’s future price depends on turning Robinhood’s user base into active ARB users, while handling inflation and Layer-2 competition. The DAO’s success in funding important upgrades, like Fusaka’s gas-saving improvements, could help counteract negative market trends.

Big question: Will the DAO vote in early 2026 on ARB staking successfully align the interests of token holders with the growth of the Arbitrum ecosystem?

What are people saying about ARB?

Arbitrum’s buzz swings between excitement over Robinhood’s support and concerns about a $395K security breach. Here’s what’s trending:

1. Robinhood’s move to Layer 2 boosts ARB optimism
2. Analysts set price targets between $0.25 and $0.28 despite mixed signals
3. A $395K exploit raises questions about DeFi security
4. Shifts in altcoin investments highlight ARB’s strong transaction activity

Deep Dive

1. @bpaynews: Price targets depend on technical recovery

“$ARB shows bullish MACD momentum from $0.19 support, targeting $0.23–$0.40 recovery over 4–6 weeks”
– @bpaynews (2K followers · 755 impressions · 2026-01-10 17:02 UTC)
View original post
What this means: The outlook is mixed. Technical indicators suggest ARB could bounce back, but the coin has dropped 39.1% over the past 90 days, and the Relative Strength Index (RSI) is neutral, showing some uncertainty among traders.

2. @CoinDesk: Robinhood bets on Arbitrum infrastructure

“Robinhood’s Layer-2 network is being tested on Arbitrum, with plans to migrate 2,000+ tokenized stocks from Arbitrum One”
– CoinDesk (January 11, 2026)
View article
What this means: This is a positive sign for ARB. If Robinhood moves forward with this migration, it could increase activity on the Arbitrum network. This is important as ARB’s 24-hour trading volume recently dropped 37.8% to $58.8 million.

3. @BlockSec: FutureSwapX exploit shakes confidence

“$395K USDC drained via Arbitrum contract flaw, exposing closed-source risks”
– BlockSec (January 10, 2026)
View report
What this means: This is a setback for ARB in the short term. Security issues like this exploit can scare away investors and reduce liquidity. Still, Arbitrum holds the #4 spot among Layer 2 networks with $2.5 billion in total value locked (TVL).

4. @CoinMarketCap: Altcoin flows favor ARB’s utility

“ARB leads L2s in fee efficiency and DeFi volumes, attracting rotation capital”
– CoinMarketCap (January 10, 2026)
View analysis
What this means: This is good news for ARB. It’s leading other Layer 2 networks in transaction fees and decentralized finance (DeFi) activity, which is drawing investment. ARB’s circulating supply has grown 24.5% year-to-date, indicating real use rather than just speculation.

Conclusion

The outlook for ARB is mixed. Robinhood’s support is a strong vote of confidence, but recent security issues in DeFi raise concerns. Technical indicators suggest there’s potential for a price recovery, but ARB’s price has dropped 71.8% over the past year. The key will be watching if Robinhood’s migration leads to real growth in total value locked—a crucial sign of ARB’s appeal to institutional investors.

What is the latest news about ARB?

Arbitrum is gaining significant attention from traditional finance through Robinhood’s new Layer-2 integration, while also dealing with a recent security incident and important infrastructure updates.

1. Robinhood Launches on Arbitrum (January 11, 2026) – Robinhood chooses Arbitrum for its new Layer-2 network, driving wider adoption.
2. FutureSwapX Hack Results in $395k Loss (January 10, 2026) – A security breach on the Arbitrum-based FutureSwapX contract leads to a $395,000 loss.
3. APRO Oracle Service Goes Live on Arbitrum (January 8, 2026) – APRO launches its Oracle-as-a-Service, improving data feeds for Arbitrum decentralized apps (dApps).

Deep Dive

1. Robinhood Launches on Arbitrum (January 11, 2026)

Overview: Robinhood is building its own Layer-2 network on Arbitrum. This allows them to use Ethereum’s strong security and liquidity to offer tokenized stocks, staking services, and plans to expand into tokenized real estate and art. Robinhood already operates tokenized stocks on Arbitrum One, growing from 200 to over 2,000 equities.
What this means: This is a positive sign for Arbitrum because it shows major traditional finance companies adopting the platform. It could bring millions of Robinhood users to Arbitrum, increasing network activity. The long-term success depends on how many users engage with tokenized assets and staking options. (CoinMarketCap)

2. FutureSwapX Hack Results in $395k Loss (January 10, 2026)

Overview: Security firm BlockSec detected suspicious transactions that drained $395,000 in USDC from FutureSwapX’s contract on Arbitrum. The attack exploited how positions were changed in the contract, revealing weaknesses in protocols that haven’t been audited. FutureSwapX has not yet responded publicly.
What this means: This is a warning sign for Arbitrum, highlighting risks in decentralized finance (DeFi) security that might scare away some users. However, since the issue was isolated, it’s unlikely to affect the entire network. Keep an eye on BlockSec’s full report for more details. (Binance)

3. APRO Oracle Service Goes Live on Arbitrum (January 8, 2026)

Overview: APRO has launched its Oracle-as-a-Service on Arbitrum, offering fast and reliable data feeds for prediction markets and DeFi applications. This service makes it easier for apps to get real-time prices for assets like commodities, competing with established providers like Chainlink and Pyth.
What this means: This is good news for Arbitrum because it improves the technical foundation for complex decentralized apps, which could attract more developers. The impact will depend on how widely major projects like GMX or Gains Network adopt APRO’s service. (TradingView)

Conclusion

Arbitrum is navigating a mix of exciting traditional finance partnerships and challenges like security incidents and infrastructure upgrades. The big question is whether Robinhood’s large user base will drive ongoing growth on the network despite recent security concerns.

What is expected in the development of ARB?

Arbitrum’s 2026 roadmap focuses on making the network faster and more scalable while growing its ecosystem through three main efforts:

1. ArbOS Dia Upgrade (Q1 2026) – Improves fee predictability and keeps strong compatibility with Ethereum
2. Orbit Chains Expansion (2026) – Plans to launch 100+ custom chains for DeFi, real-world assets, and gaming
3. Security Audit Program (Until August 2026) – Sets aside $14 million to help projects pay for security reviews

In-Depth Look

1. ArbOS Dia Upgrade (Q1 2026)

What it is:
This upgrade will make transaction fees more predictable, add advanced security features for businesses, and support Ethereum Fusaka technology. It builds on Arbitrum’s existing Nitro technology to improve the overall user experience without losing compatibility with Ethereum.

Why it matters:
More predictable fees can attract bigger users like institutions and developers building complex apps. However, if the upgrade takes longer than expected, it might slow down new development temporarily.

2. Orbit Chains Expansion (2026)

What it is:
Arbitrum Orbit lets developers create their own Layer 3 (L3) chains that benefit from Arbitrum’s security. With over 40 chains already active, the goal for 2026 is to grow to more than 100 chains focused on decentralized finance (DeFi), real-world assets (RWA), and gaming. A $215 million fund is dedicated to encouraging game developers to build on Orbit.

Why it matters:
More Orbit chains mean more transactions and use cases for ARB, which is good for the network’s growth. Still, Arbitrum faces competition from other technologies like zk-Rollups, which could affect how fast it grows.

3. Security Audit Program (Until August 2026)

What it is:
ArbitrumDAO approved a $14 million fund to help projects cover 50-100% of their security audit costs through August 2026. A special committee reviews auditors and projects, focusing on early-stage protocols to make the ecosystem safer.

Why it matters:
Lower audit costs make it easier for quality projects to launch, which can increase the total value locked (TVL) on Arbitrum. The program’s success depends on maintaining high audit standards across many projects.

Conclusion

Arbitrum’s 2026 plan aims to strengthen its core technology while growing a diverse, multi-chain ecosystem with security as a top priority. The big question is whether Orbit chains will attract more users than competing Layer 2 solutions, especially in gaming and real-world asset sectors.

What updates are there in the ARB code base?

Arbitrum’s latest software updates focus on making the network more scalable, secure, and better aligned with Ethereum through the ArbOS 50 Dia upgrade.

1. ArbOS 50 Dia Activation (December 2025) – Improved compatibility with Ethereum and added important features like native token minting and burning.
2. Multi-Resource Gas Tracking (December 2025) – Set the foundation for smarter, more stable transaction fees by tracking different resource uses separately.
3. Critical Bug Fixes (December 2025) – Fixed key issues affecting transaction costs and performance across different computer systems.

Deep Dive

1. ArbOS 50 Dia Activation (December 2025)

Overview: This upgrade brought in important Ethereum improvements, including new standards for how accounts work (EIP-7702) and better cryptographic functions (EIP-2537). It also introduced a gas limit of 32 million per transaction to keep the network stable.

With these changes, Arbitrum One and Nova can now handle Ethereum-style operations like verifying advanced digital signatures and managing accounts more flexibly. The upgrade also added the ability to create and destroy tokens directly on Orbit chains, although this feature is turned off for Arbitrum One and Nova for now. This helps make cross-chain interactions smoother.

What this means: This is a positive development for Arbitrum. It brings the network closer to Ethereum’s standards, allowing developers to build more advanced decentralized apps (dApps) with lower fees and stronger security. Users will enjoy a smoother experience and a platform ready for future innovations.
(Source)

2. Multi-Resource Gas Tracking (December 2025)

Overview: The upgrade changed how Arbitrum measures “gas” — the fee users pay to process transactions. Instead of tracking gas as one single number, it now tracks gas usage separately for computing power, storage, and data growth.

This change doesn’t affect fees right away but sets the stage for a more flexible pricing system. In the future, fees can adjust based on which resources are in high demand, helping keep transaction costs fair and predictable.

What this means: In the short term, this doesn’t change much for users or developers. But over time, it’s a big step toward more stable and fair transaction fees, especially during busy network times. Developers will also benefit from better predictability when building dApps.
(Source)

3. Critical Bug Fixes (December 2025)

Overview: Several important bugs were fixed, including how gas costs for certain data are calculated, how new account features behave, and differences in transaction processing between ARM and x86 computer architectures.

One fix involved hardcoding a solution for a specific problematic transaction on Arbitrum Sepolia and setting a standard limit for the WebAssembly (WASM) stack depth to avoid future issues.

What this means: These fixes improve the network’s reliability and ensure it works consistently across different types of hardware. Users will see fewer errors, and developers won’t have to worry about bugs that only affect certain systems.
(Source)

Conclusion

Arbitrum’s recent updates strengthen its connection with Ethereum, improve fee stability, and boost overall network reliability. These improvements position Arbitrum well as a leading Layer 2 solution. It will be interesting to see how these upgrades impact the adoption of Orbit chains in 2026.