Arbitrum Beats Ethereum in DeFi Activity: Could This Trigger a Price Recovery?

Key Insights:

• Arbitrum price surged 36% this week, outperforming most Layer-2 tokens.
• Daily DeFi users on Arbitrum now exceed Ethereum, signaling growing demand.
• Real buyer volume and whale outflows support the ongoing ARB price rally towards $1.

ARB crypto is having a big week. Arbitrum price has gone up 12% in the past 24 hours and over 36% in the past 7 days.

Among all Layer-2 projects, Arbitrum has moved the most. But more than the price, it’s what’s happening behind the scenes that matters.

Arbitrum has now overtaken Ethereum in daily active users in DeFi. That’s a first. And with that, many traders think this rally may not be over. If the momentum continues, one dollar could be the next big target.

Why Arbitrum’s DeFi Growth Matters

Arbitrum is a Layer-2 blockchain. That means it sits on top of Ethereum and helps it scale faster and cheaper. The crypto community like it because transactions cost less and happen faster than on Ethereum.

In the past month, Arbitrum’s DeFi activity has jumped over 36%. This includes more trades, more users, and more smart contracts being used.

The biggest moment? Arbitrum now has more daily active DeFi user growth than Ethereum, according to recent stats reporting month-on-month growth. This is a big deal.

Ethereum has been the leader in DeFi for years. For Arbitrum to take that spot, even briefly, shows it’s gaining real trust.

More users using DeFi means more gas fees paid. It also means more builders, more apps, and more attention.

Whale Accumulation and Real Volume Support the Move

Price going up is good. But when it’s backed by real buying, it’s even better.

Here’s what we see:

On-balance volume (OBV), which tracks if more money is flowing in or out, has made a new higher high. That means people are really buying, not just speculating.

Exchange net flows flipped in a big way. A few days ago, Arbitrum saw about 889,000 tokens flowing into exchanges. Now, there’s a huge outflow of over 8.1 million.

This means people are buying ARB and moving it off exchanges, likely to hold.

That’s often a whale behavior: buying big and moving tokens to cold wallets or staking platforms. It’s a sign they are not looking to sell soon.

Also, the bull-bear power indicator shows that buyers are clearly in control right now. And the level of control is significant, not something that can be flipped easily.

Arbitrum Price Chart Shows $1 Target, But One Risk Remains

We used the trend-based Fibonacci extension tool to find the next possible price target.

Fibonacci extension is used when an asset is already in an uptrend. It helps traders guess where the price might go next if the trend continues.

Based on current momentum, $0.96 is the next target. It is worth noting that the projected level is almost 40% above the current price.

But there’s a risk.

The liquidation map shows too many long trades in the market right now. To be exact:

• $41.3 million in long positions
• Only $18.2 million in shorts

That means many traders are betting on the price going up.

If the price falls even a little, many of these long positions could get liquidated. That could cause a sharp drop, as forced selling often triggers more selling.

Arbitrum is not just another altcoin randomly pumping. It has real reasons for this rally: more users, more DeFi action, real buying by whales, and strong price support from OBV.

Yes, there’s a small risk from too much leverage in the market. But if this momentum holds, $1 is not far away. This might be the breakout moment ARB price has been waiting for.

However, if the price breaks under $0.53, the bullish momentum might cease to exist for a while.