Arbitrum, the leading Ethereum Layer 2 scaling solution, has attracted a massive $25.8 billion in net inflows over the past three months, highlighting surging investor confidence in its low-cost, high-speed infrastructure amid Ethereum's congestion issues.
This capital influx coincides with a sharp price recovery for the ARB token, which rebounded aggressively from around $0.18 to above $0.21 after a steep sell-off. Market strategist Michaël van de Poppe pointed to a massive bullish divergence forming on higher timeframes, suggesting a potential trend shift for ARB.
Key drivers behind the inflows include increased DeFi activity with protocols like GMX and Radiant Capital migrating to Arbitrum, rapid developer and ecosystem growth supported by the Arbitrum Foundation, and growing utility of the ARB token for governance and staking in the Arbitrum DAO.
Van de Poppe noted that ARB's recovery and broader altcoin strength depend on Bitcoin clearing the $90,000 level. For ARB, the $0.21–$0.22 zone serves as a critical pivot, with expanded volume during the rebound indicating substantive buyer participation.
The combined factors of substantial capital inflows and technical bullish signals position Arbitrum for continued ecosystem expansion and potential leadership in the Layer 2 sector.
