- Arbitrum led 2025 capital inflows, attracting steady investment into scalable Layer 2 infrastructure.
- ARB price remained subdued near support despite strong adoption, revenue, and network activity.
- Price compression and neutral momentum indicators suggest potential upside if trends continue into 2026.
Arbitrum Network emerged as a major beneficiary of capital flows in 2025, absorbing funds steadily while other networks faced volatile rotations. Ethereum’s Layer 2 network gained confidence among investors prioritizing scalability, liquidity, and real-world application over hype. Yet, ARB’s price remained subdued near multi-month lows. Traders and analysts are now asking why steady inflows did not translate into price growth and what these trends might signal heading into 2026.
Capital Rotation Favored Layer 2 Infrastructure
Arbitrum recorded the highest net inflows among major chains last year, according to Artemis on-chain data. Investors clearly preferred networks offering reliability, liquidity, and production-ready environments. Unlike short-term, incentive-driven surges, Arbitrum’s inflows appeared steady, suggesting structural positioning rather than speculative rotations. Fundamental growth reinforced the positive outlook.
Total value secured on the network reached approximately $20 billion, demonstrating deep liquidity anchoring the ecosystem. Tokenized stocks launched via Robinhood exceeded $50 million in trading volume, signaling growing real-world adoption. October alone generated roughly $4.5 million in revenue across multiple verticals, while Arbitrum Timeboost collected over $6 million in cumulative fees.
Timeboost auction participation remained concentrated among a few entities, showing early institutional engagement rather than declining interest. Activity on the network also remained high without airdrop incentives driving volume. Arbitrum consistently ranked as one of the most active Layer 2 networks by transaction count, second only to Base.
The activity reflected genuine application usage, reinforcing long-term network value. Despite these strong fundamentals, ARB’s price showed compression. The token traded inside a long-term falling wedge, hovering near $0.19. Repeated tests of this support zone showed limited downside follow-through, suggesting price compression rather than exhaustion.
Price Lag and Key Trends for 2026
Momentum indicators hint at hesitation rather than breakdown. RSI hovered near neutral levels, while MACD showed muted momentum. Historically, similar periods of compression have preceded upside reactions. Traders might view the current pattern as a potential opportunity rather than a warning. Arbitrum’s strong inflows combined with subdued pricing highlight the market’s structural focus.
Capital favors production-ready Layer 2 infrastructure, but market pricing often lags behind real adoption. This trend may continue into 2026 as investors monitor network activity, institutional engagement, and revenue growth. The network’s fundamentals remain robust. High liquidity, consistent transaction throughput, and real-world applications provide a strong foundation.
Market participants should watch the 50-day and long-term moving averages for potential breakout signals. Price compression does not negate the inflows, but careful monitoring remains essential.Arbitrum led capital inflows across 2025, even as ARB price remained muted. Steady adoption, revenue, and transaction activity demonstrate structural strength. Price indicators suggest potential upside if the network maintains engagement and liquidity.
