Arbitrum Surges 50% in September, Fuelled by Robinhood Chain Revenue

Arbitrum's price has surged by over 50% in the first week of September, outpacing Ethereum's growth. The token's rally is largely attributed to its connection with Robinhood Chain, a layer 2 network that has seen significant on-chain activity.

The Arbitrum team receives 10% of Robinhood Chain's revenue, which has totaled a record $19 million this month, a 220% increase from the previous month. This setup gives Arbitrum a direct benefit from Robinhood's rapid growth.

Rohan Ahluwalia of Bitget notes that Robinhood Chain is also built on Ethereum, but ETH has only seen a 1.5% price increase this month compared to ARB's significant rally. This indicates that Arbitrum is capturing much of the upside from Robinhood's growing on-chain activity.

The popularity of ARB is on the rise, currently being one of the top 3 most searched altcoins on CryptoRank this week. With Bitcoin dominance below 60%, Arbitrum has the potential to continue its upward trajectory if the altcoin cycle begins to gain traction.