Arbitrum's $28% Rally Could Be Sustained by $1.6 Billion Bridge Asset Influx

Arbitrum's [ARB] price surged by 28% in the last day, and analysts believe that this rally may be sustained due to a significant influx of capital into the bridge assets. According to data from Artemis, the blockchain retained $1.6 billion in netflow over the last day, with a positive sign indicating that most of the capital settled on the chain.

This netflow is tracked by the bridge asset movement across multiple chains, and Arbitrum dominated this movement ahead of Ethereum [ETH] and Robinhood. The positive netflow suggests that there's strong demand for ARB, which could extend its rally in the near term.

In addition to the netflow, other catalysts such as rising Total Value Locked (TVL) and DEX volume have also contributed to the surge in price. TVL has increased by $170 million over the past 13 days, reaching a new level of $1.412 billion, while DEX volume has seen a significant pickup after declining steadily between August 21st and 28th.

The perpetual market has also seen a massive inflow of capital, with Open Interest (OI) rising by 65% to reach $169 million. The Funding Rate is currently at 0.0055%, indicating that the majority of market flow and existing capital are positioned long.