The price of Arbitrum tokens rose as transaction volume on the network surpassed that of Solana-based applications, which thrived after a frenzy led by the meme coin in December.
Arbitrum’s ARB token rallied toward $2 on Wednesday, hitting a new all-time high and pushing total value locked (TVL) above $2.5 billion as traders appeared to flock to the network, expecting it to power the next leg up in the cryptocurrency market.
Its price has risen about 10% in the past 24 hours, outperforming the broader cryptocurrency market, while on-chain transaction volume for Arbitrum-based applications has exceeded $920 million. The CoinDesk Market Index fell 1.7% in the same period. The influx of Arbitrum has outpaced the number of Solana-based applications, which have flourished after the meme coin-led frenzy in December.
Data from DefiLlama shows that the TVL of Arbitrum-based applications has increased by $1 billion since October, while net inflows have also increased.
Arbitrum’s token incentives appear to be helping to increase interest in the ecosystem’s games. Over the past week, users of decentralized exchanges GMX and Gains Network have benefited from increased rewards and lower fees as part of their incentive programs, though this may have improved sentiment around the ARB token.
In October, Arbitrum distributed approximately $40 million worth of ARB tokens to projects building on the network as part of a short-term incentive program, with projects receiving ARB tokens worth anywhere from a few thousand dollars to $30 million.
GMX received the most rewards at 12 million ARB, worth just over $10 million, followed by Gains Network at 7 million ARB.
