Arbitrum crypto’s tokenized stocks surge 476% – Can ARB end its 2-year slump?

Arbitrum [ARB] has been in a strong downtrend for two years, despite the chain’s performance. However, the altcoin appears to be forming a bottom at $0.07 as tokenization on the chain gains pace.

Notably, the market cap of tokenized stocks on Arbitrum by issuer grew to $173 million, a 476% increase. Reality accounted for $135 million, while Robinhood, Dinari, and xStocks were capped at $24 million, $13.9 million, and $3.8K, respectively.

Over the past ninety days, the market cap of the top 10 tokenized stocks surpassed the $100 million mark. They included Micron, Nvidia, SanDisk, SpaceX, Strategy (formerly MicroStrategy), Tesla, and Intel, among others.

Moreover, the Arbitrum Platform has the highest RWA count at 3,208, making it the first chain to surpass 3,000, according to rwa.xyz. It is followed by Solana [SOL], Ethereum [ETH], Avalanche [AVAX], and BNB Chain, respectively.

Despite the momentum in tokenization, bearish sentiments did not lurk.

In addition to the daily token unlock of 479.06K ARB, a larger unlock is approaching. On the 16th of August, Abritrum will unlock 93.19 million ARB tokens worth $7.41 million. This adds selling pressure to the existing strong downtrend.

Such consistent selling pressure from token unlocks partially explains why ARB’s price is weak.

ARB’s market structure after a 2-year downtrend

The market structure has been bearish for the past two years, but things could be about to change. The 4-hour chart shows a structure that is in transition at around the $0.07 zone.

ARB’s price is making higher lows alongside the RSI Divergence which was at 50.99 as of writing, a typical institutional accumulation pattern. As big players build positions, the bigger crowd is fading.

This is evident as the Aggregate Crypto Open Interest dropped from $64.5 million to $46.63 million, indicating that the broader market was losing interest in the token.

Therefore, the price of Arbitrum remains in a downtrend due to the existing market structure and tokenomics.

But the growth in tokenization may help speed up the formation of a bottom between the $0.07 and $0.09 zones. However, if the slanting trendline breaks down, it could indicate the continuation of the downtrend.

Final Summary

• The market cap of tokenized stocks on Arbitrum One has grown by 476%, but the token remains under intense selling pressure. 
• ARB price has been declining for the past two years but has hinted at bottoming at the $0.07 zone.