Arbitrum Price Surges 150% as Robinhood Integration Boosts Fees

The price of Arbitrum (ARB) has surged by around 150 percent over the past 30 days, making it the strongest performer in the top 60 assets. This significant gain can be attributed to two main developments: Robinhood's integration with Arbitrum and the growth of tokenised assets on the network.

Robinhood's decision to build its second-layer network, Robinhood Chain, on Arbitrum technology has led to a substantial increase in fees generated by the network. At peak times, the fees have reached 240 times more than those on the Arbitrum network itself. However, it is worth noting that part of this activity was due to subsidised fees, and it remains to be seen how much volume will stay once the subsidy expires.

The second driver behind ARB's price increase is the tokenisation of real-world assets on the Arbitrum network. This segment works differently from the rest of the crypto market, as decisions regarding tokenisation have lead times of months and last longer. The distance to Arbitrum's all-time high remains around 90 percent.

The two dates that will decide whether the rally holds are September 16, when 92.6 million ARB were released, and the end of the fee subsidy on Robinhood Chain. If volume falls off sharply after the subsidy expires, it may indicate that part of the activity was bought. However, if volume stays stable, Arbitrum has won a customer who brings revenue.