The cryptocurrency market has been on a rollercoaster ride following major geopolitical developments. Prices plunged on February 3 after U.S. President Donald Trump announced potential tariffs on China, Mexico, and Canada, leading to an estimated $20 billion in liquidations.
However, the market quickly rebounded when Trump temporarily paused the tariffs. Bitcoin surged past $101,000, while Ether recovered to $2,880. Arbitrum ($ARB) also showed signs of recovery, currently trading at $0.4694 after a 6.4% daily increase.
https://www.coingecko.com/en/coins/arbitrum
Despite dropping 48.2% in the past month, investors are watching closely to see if $ARB can climb back above $0.50.
Ethereum L2 TVL Declines, but Arbitrum Remains Active
Ethereum-based Layer 2 (L2) ecosystems have seen a decline in total value locked (TVL), reflecting broader market volatility.
According to CoinRank, the cumulative TVL of Ethereum’s L2 networks has dropped to $43.29 billion, marking a 1.97% decrease over recent days. Despite the downturn, Arbitrum remains the leading L2 solution, currently holding a TVL of $2.626 billion. However, this marks a decline from its $3.44 billion peak on December 14, 2024.
Transaction activity on Arbitrum One has fluctuated significantly, with 2.88 million transactions recorded on February 3, 2025. The number of new addresses on the same day reached 46,353, indicating continued network adoption.
https://app.nansen.ai/macro/blockchains?chain=arbitrum
Data from DeFiLlama shows a 118% surge in token volume on Arbitrum, reaching $10.15 billion in the past week. However, Nansen reports a decline in active addresses, dropping from 569,984 on January 20 to 246,909 on February 3. This shift has also led to a 22.43% decrease in daily transactions to 2.4 million.
Arbitrum ($ARB) Price Analysis: Can It Recover from Recent Lows?
Currently, $ARB is priced at $0.4618 with a 24-hour trading volume of $598.3 million. While it has gained 6.57% in the past day, it remains down 27.80% over the last week. With a circulating supply of 4.3 billion $ARB, its market cap stands at $2 billion.
Recently, $ARB experienced a sharp 40% drop, hitting an all-time low of $0.345 after losing key support at $0.473. This decline has raised concerns about further downside, with a potential slide to $0.42 if selling pressure continues.
However, a slight recovery to $0.416 suggests a possible attempt to reclaim $0.473, which could invalidate the bearish outlook and move it to a green support zone.
If $ARB fails to hold above current support, analysts warn it may retest its November 2024 low of $0.459. On the upside, resistance lies at $0.56–$0.54, with a high-time supply zone at $1.35, which is an area where a rejection is likely.
https://www.tradingview.com/chart/nJSa88JQ/?symbol=BINANCE:ARBUSDT
With the RSI (relative strength index) currently standing between 29 – 36, traders are closely watching these levels for potential entry and exit points.
Solaxy: The Layer 2 Solution Solana Needs Amid Market Volatility
As investors seek reliable blockchain solutions, Solana stands out for its high speed and low fees. However, network congestion remains challenging, especially during high-traffic events like meme coin launches. That’s where Solaxy ($SOLX) comes in.
Solaxy ($SOLAX) is the next evolution of blockchain scalability, built to optimize Solana’s performance. Like Ethereum’s Layer 2 solutions, it enhances efficiency by bundling transactions off-chain, reducing fees by 90% and ensuring near-instant processing.
But Solaxy isn’t just about speed. Bridging Solana and Ethereum combines Solana’s cost-effectiveness with Ethereum’s security, liquidity, and vast developer ecosystem. This opens new opportunities for seamless cross-chain applications, expanding Solana’s reach like never before.
Strong investor interest has already raised over $17.8 million through Solaxy’s presale, and demand continues to surge. The $SOLX token is priced at $0.001624 and offers a 226% staking yield.
With less than 24 hours left until the next price change, now is the time to secure your stake in Solaxy’s future.
