Arbitrum One’s Total Value Locked (TVL) has climbed to approximately $17.5 billion, securing over 40% market share among Ethereum rollups and significantly outpacing rivals like Base and Optimism.
Despite substantial altcoin drawdowns experienced in 2025, Arbitrum’s locked value demonstrated resilience. It rebounded from sub-$4 billion levels observed around an October crash to reach new cycle highs, reflecting sustained engagement in its DeFi and gaming ecosystems.
Analysis of ARB price charts indicates bullish Relative Strength Index (RSI) divergence and a contraction in supply driven by incentives and locking mechanisms. This technical setup underpins analyst predictions of a potential 300–400% price increase should market risk appetite return.
The Dominance of Arbitrum One in Ethereum's Layer 2 Ecosystem
The Layer 2 (L2) ecosystem of Ethereum is in constant evolution, with Arbitrum One emerging as the dominant force. Recent data from L2Beat reveals an impressive $17.53 billion in Total Value Locked (TVL) on Arbitrum One. This figure significantly surpasses competitors such as Base, which holds $13.13 billion, and Optimism Mainnet, with $2.47 billion. Arbitrum's leading position, representing over 40% market share among Ethereum rollups, is a direct result of continuous innovation and widespread user adoption.
Factors Driving User and Liquidity Preference for Arbitrum
Arbitrum's TVL has experienced a remarkable surge, marking a 70% increase year-over-year and returning to levels not seen since the peak of the 2021 bull run. Even during the significant market downturn of October 10, which caused widespread altcoin price drops to historic lows, Arbitrum’s locked value remained robust. It climbed from $3.8 billion prior to the crash to its current impressive levels.
This sustained performance highlights the strength of Arbitrum's fundamentals, even as broader markets faced price corrections and capitulation. Transaction volumes have consistently increased, underscoring the genuine utility offered by DeFi, NFTs, and gaming decentralized applications (dApps) hosted on the Arbitrum network.
Arbitrum's optimistic rollup technology provides security comparable to Ethereum's mainnet while offering significantly faster and more cost-effective transactions, effectively addressing the scalability trilemma without compromising decentralization. Developers are attracted to its robust Orbit stack for creating custom chains, and integrations with major protocols like Uniswap and Aave further enhance liquidity. While Base, supported by Coinbase, presents institutional appeal, Arbitrum's established ecosystem and governance model, managed through the ARB token, provide a distinct advantage. Newer networks like Blast and Starknet, with TVLs below $2 billion, emphasize Arbitrum's leading position; it is not merely competing but setting the pace for L2 solutions.
Technical Indicators and Future Growth Potential for ARB
The technical outlook for $ARB presents an optimistic scenario for investors. Charts from TradingView reveal a classic bullish divergence, where the price is establishing lower lows while the Relative Strength Index (RSI) is charting higher lows. This technical pattern, coupled with a reduction in circulating supply due to staking incentives, suggests a potential trend reversal.
Market analyst Michaël van de Poppe (@CryptoMichNL) has commented on the potential for $ARB, stating, "I wouldn’t be surprised if there’s a 300-400% move upwards for $ARB, as that would be closer to the fair price of the underlying asset." Looking ahead, Ethereum's Dencun upgrade and the expansion of its blobspace are expected to further accelerate L2 growth, with Arbitrum well-positioned to capture a significant portion of this expansion.
As institutional investment resumes and retail investors re-engage with yield farming opportunities, $ARB has the potential to redefine the tokenomics of L2 solutions. For investors seeking opportunities in the next phase of the crypto market recovery, Arbitrum represents a strong conviction play on the future of a scalable Ethereum.