In the dynamic world of Ethereum-based solutions, Arbitrum, a Layer 2 scaling platform, has found itself grappling with market bearishness. The token, defined by its ticker ARB, has breached a psychological threshold, tumbling below the $2 mark—a development that has sent ripples of concern through its investment community. As investors keep a watchful eye on ARB’s trajectory, concerns mount as an upcoming unlocking event looms in March, an occurrence that historically has the potential to exert downward pressure on a token’s valuation.
Amidst the prevailing bearish trend, it is noteworthy that Arbitrum is not without its silver linings. Indeed, the blockchain demonstrates robust vitality within the non-fungible token (NFT) marketplace where it has outperformed stalwarts like Ethereum and Solana, securing a competitive edge in this niche.
A recent resurgence in Arbitrum’s NFT market fortunes is highlighted by Crypto Slam data, revealing a significant recovery in daily sales volume. This placed Arbitrum ambitiously at the fourth position by total NFT volume sales and as the top gainer in a 24-hour comparison, with an impressive 119.41% surge. The blockchain’s transactions witnessed an uptick to over $1.26 million, with its market activity elevating by 8.09% in wash sales when compared to the previous day.
Wash trading remains a subject of scrutiny, as it involves the artificial inflation of an asset’s trading volume through simultaneous sales and purchases by the same entities. This controversial strategy has been observed in the realm of NFTs, where digital asset trading can sometimes involve collusion or the use of multiple accounts by a singular entity to feign heightened market activity.
Despite the specter of wash trading, Arbitrum’s raw numbers provide some context to its market position. Over the last day, the blockchain facilitated 8,094 transactions—an increase of 9.04%, with buyer and seller engagement within its NFT offerings rising approximately by 10%.
Comparatively, other leading blockchains experienced more moderate upswings. Solana, for example, reported a 26.69% jump in daily volume sales, totaling $10.9 million, with a noticeable portion attributed to wash sales. Ethereum’s NFT market, although still at the helm with the day’s sales volume, faced a slight 2.9% slip, indicative of the market’s fluctuating nature.
Zooming out to a weekly analysis, we find that half of the top ten blockchains by NFT sales volume have captured gains, with Arbitrum commanding attention due to a staggering 373.18% surge. Ethereum maintains its dominance in terms of overall sales volume at $202.5 million, yet Solana leads in the sheer number of transactions and user interaction.
In the broader context, these weekly gains offer a glimpse into the evolving intrigue centered around NFTs within these platforms. Nevertheless, these metrics are still understated when evaluated against the NFT market’s performance over a month-long scale.
In the immediate now, ARB, or ARBUSDT, finds its stride at $1.82 on the 1-day chart, with stakeholders and enthusiasts alike closely monitoring its next moves on trading platforms.
