Arbitrum Crypto Sees Record Inflows Amid Ubisoft Partnership

Arbitrum is reportedly venturing into WEB3 gaming courtesy of a collaboration with popular game developer, Ubisoft. Preliminary information revealed that the game, dubbed Captain Laserhawk: The G.A.M.E., is slated to launch on 18 December. Effects of the same on Arbitrum crypto are to be seen.

Details about the potential impact on the Arbitrum ecosystem and its native token were scanty. However, it could potentially boost network activity and perhaps even influence ARB demand down the line.

Arbitrum Crypto Outpaces Top layer-1s in Weekly Inflows

The announcement aligns with the return of excitement in the Arbitrum ecosystem. It was the top ranked protocol in terms of inflows last week, outperforming top players including layer 1 networks.

The surge in weekly inflows combined with the recent announcement about the upcoming game confirms Arbitrum’s growing visibility. It could also be a sign of some interesting times ahead for the network, and ARB.

The robust weekly inflows also manifested some TVL gains.  TVL fell as low as 3.29 billion ARB at the end of the first week of December. It bounced back as high as 3.91 billion coins as of 11 December.

The TVL upside was an indicator confirming a sentiment improvement around ARB. This coincided with a mid-week bullish bounce back.

– Advertisement –

ARB Price Action Update

Speaking of price, ARB experienced a resurgence of sell pressure in the second week of December. A classic profit-taking kind of retracement after the bullish performance it achieved in November and the first week of December.

Mapping Fibonacci retracement onto the bottom and the top of the trend revealed that demand resumed after touching the 0.5 level. This was confirmation that the bullish bias still remained even after the retracement hence the eagerness of buyers.

ARB exchanged hands at $0.99 at press time. Despite its recent bullish performance, the cryptocurrency was still deeply discounted from its ATH. The token’s press time meant that it would have to rally by over 144% to venture into price discovery.

ARB bulls have so far failed to capitalize on the recent bounce-back. This outcome suggests that there is growing uncertainty regarding directional momentum. The strong volumes that prevailed in November and earlier this month have been declining fast.

For context, daily volume peaked at $1.2 billion on 10 December but has been declining in the last 5 days. It was down to $426.97 million as of 15 December, confirming a slowdown in trading activity.

The above observation suggests that we will likely observe a decline in volatility in the coming days especially as the holidays draw near. A lot of factors could influence the next major price moves.

In the meantime, traders should keep an eye out on declining volumes. If this trend continues, then chances are that ARB demand in the short-run could struggle to reclaim the short term peak.

As far as ARB long term outlook is concerned, the upcoming WEB3 game could be a catalyst for long term growth.