Arbitrum Token Skyrockets, Hits Record High with $2.5B Value Locked

• Arbitrum's ARB Token Reaches New Heights
• Rise in ARB Price and On-chain Volumes
• Data from DefiLlama
• Token Incentives Drive Attention
• Historical Incentives Plan

Arbitrum's ARB Token Reaches New Heights

The ARB token from Arbitrum touched nearly $2 on Wednesday, establishing a new record high. Simultaneously, the total value locked (TVL) surpassed $2.5 billion. This rise appeared to be a result of traders gradually gravitating towards the network, speculating it to be the catalyst for the upcoming surge in the cryptocurrency market.

Rise in ARB Price and On-chain Volumes

The price of ARB escalated by approximately 10% over the last 24 hours, outperforming the broader cryptocurrency market. Concurrently, the on-chain volumes on Arbitrum-based applications surpassed $920 million. The Market Index, however, witnessed a decline of 1.7% during the same period. Volumes on Arbitrum exceeded those of Solana$104 5.03%-based applications, which had previously seen a surge due to a meme coin-fueled rush in December.

Data from DefiLlama

DefiLlama data indicates that the TVL on Arbitrum-based applications has seen a rise of $1 billion since October, corresponding to an increase in net inflows. The inflow and TVL of Arbitrum have continued to grow since October.

Token Incentives Drive Attention

The token incentives provided by Arbitrum appear to have played a significant role in driving increased attention towards its ecosystem. Over the past week, users of decentralized exchanges GMX$51.3 -0.10% and Gains$0.159 -2.09% Network have benefited from enhanced rewards and reduced fees as part of the incentives plan, presumably enhancing the appeal for ARB tokens.

Historical Incentives Plan

In October, Arbitrum allocated approximately $40 million in ARB tokens to projects developed on its network as part of a short-term incentives plan. The projects received a range from a few thousand to $30 million in ARB tokens. GMX received the highest rewards with 12 million ARB, worth a little over $10 million, closely followed by Gains Network receiving 7 million ARB.

Edited by Jonathan Stoker