Arbitrum, a layer 2 blockchain that airdropped over 1 billion ARBK tokens to its community in March, has been the subject of negative news over the weekend. The Arbitrum Foundation came under fire for spending tokens without the approval of its holders, sparking Fear, Uncertainty, and Doubt (FUD) for the asset. However, ARB has refused to stay down through all of this and its trading volume has seen a massive boost as a result.
In the last 24 hours, the trading volume of Arbitrum has seen a massive boost. Data from Coinmarketcap shows that the token’s volume jumped by more than 75% in the one-day period, bringing its total volume to more than $1.17 billion.
This is massive for the cryptocurrency given that its current market cap is sitting at $1.55 billion. So its volume is currently almost as high as its market cap and the uptick is not just on centralized exchanges alone as decentralized exchange volume was $326.5 million.
This comes despite widespread FUD that the Arbitrum Foundation is dumping its own tokens after it admitted to selling around 50 million coins. Like with any other news, it prompted more interest in the coin and its volume has been on the rise since then.
ARB Token Continues To Defy Bears
Naturally, the ARB token price reacted negatively to the Arbitrum Foundation news. But it has not been as bad as expected. The price of the token initially lost its footing above $1.3 and declined to the $1.1 region. However, it would not spend long at this level.
ARB fights bears despite FUD | Source: ARBUSD on TradingView.com
The price of ARB has since recovered above $1.2, defying all of the FUD which was expected to drag the token below the $1 level. This recovery amid the FUD shows that the bulls are still very much in control of the asset and a sub-$1 level would be a hard-won victory for bears.
The ARB community is still looking favorably toward the token as forecasts remain largely in the green. The Price Estimates feature on Coinmarketcap shows that users expect the coin to rally another 10% from its current price and cross $1.3 once more by the end of the month. If this happens, ARB will no doubt begin another upward rally and would be well on its way toward $1.5.
At the time of writing, ARB is changing hands at a price of $1.99, down 4.78% in the last 24 hours.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com
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