Arbitrum (ARB) exchange rate: how it changed and what influenced it

Arbitrum has become one of the leading Layer-2 (L2) solutions in the crypto market for scaling the Ethereum network.

Emergence and global market correction (2023)

The ARB token appeared at the end of March 2023, well after Arbitrum's main net (mainnet) was launched. Initially, ARB tokens were distributed in an eyedrop among active Arbitrum's L2 network users, who made various transactions.

On the same day, Arbitrum held the airdrop, the ARB token was listed on exchanges. Its rate then was $1.32, and its market capitalization was $1.78, which is very high, especially considering the not-so-favorable situation in the crypto market. The altcoin initially fell to $0.16 but then jumped to a new all-time high (ATH) of $1.69 in April 2023, even though the Arbitrum fund refused to return the 700 million ARB tokens seized from the DAO treasury.

However, almost immediately after reaching ATH, Arbitrum's cryptocurrency exchange rate collapsed to $1.33 in late April and then to $1.09 in May, hitting an all-time low. The Arbitrum fund's decision to refuse to return the tokens, as well as their withdrawal, caused a negative reaction from the crypto community and could probably have influenced the fall in the value of ARB in April and May.

Then, the correction of the Arbitrum token continued, and in mid-June, the ARB value updated the historical minimum at $0.94. All this was accompanied by a general decline in the crypto market during the first three quarters of 2023. Several negative factors caused this correction:

• The aggressive monetary policy of the U.S. Federal Reserve (Fed) to raise the key rate;
• The collapse of the Terra ecosystem and the bankruptcy of one of the largest crypto exchanges, FTX, in 2022;
• The deterioration of global macroeconomic conditions prompted investors to exit high-risk assets such as equities and cryptocurrencies.

Although the cryptocurrency ARB bounced back after a two-month correction and rose to $1.3 in July 2023, this was followed by another strong correction wave. In September of the same year, the value of the ARB token reached a new all-time low, dropping to $0.76.

In October, the cryptocurrency market resumed its growth. Altcoins, including the Arbitrum token, followed the development of the leading cryptocurrency, Bitcoin. In November, the value of the cryptocurrency ARB rose to $1.2. After a minor correction in the second half of November and a drop to $0.95, the growth of the ARB token continued, and by the end of 2023, the price of the altcoin rose to a six-month high of $1.42.

A new phase of growth (2024 — 2025)

In 2024, on a positive wave in the cryptocurrency market, the growth of the Arbitrum token continued. The remarkably rapid growth of the ARB cryptocurrency was recorded in January when its price jumped sharply to a new all-time high of $2.4, which has been maintained to this day.

After a brief correction that lasted until February, the rate of Arbitrum cryptocurrency dropped to $1.73. However, there were no good reasons for this, and the crypto market demonstrated a growing trend. In the same month, amid the crypto market's general rise, the ARB token's value rose again to $2.11. After a correction in March, the price of Arbitrum returned to growth again and reached $2.16.

However, a collapse followed, and the price of the ARB cryptocurrency fell to $1.59 by the end of March, then to $1.03 in April of the same year. This happened against the backdrop of a general decline in the crypto market, which, according to analysts, was due to the outflow of funds from crypto-ETFs and bitcoin funds, as well as the capitulation of miners due to halving, which significantly reduced the profitability of many miners and jeopardized their business.

After a slight rebound in May 2024 to $1.23, the price of the Arbitrum cryptocurrency continued to fall until August, when it reached its all-time low at $0.43, helped by a negative backdrop in the crypto market due to events such as:

• No Fed rate cut and harmful U.S. market data;
• The sale of a large amount of bitcoins seized by the German government;
• The payment of money to creditors of bankrupt companies Mt. Gox and Genesis Global.

According to experts, the fall could also be due to uncertainty about the U.S. presidential election.

The value of the cryptocurrency ARB did not change significantly from August until November 2024. However, after Trump's victory in the presidential race, the crypto market "revived," and many digital assets began to grow again.

Already in December, the value of the cryptocurrency Arbitrum more than doubled — from $0.47 to $1.18. However, the crypto market went into a natural stage of correction as many investors decided to lock in profits. As of early January 2025, the cryptocurrency ARB is at $0.9 with a market capitalization of $3.79 billion.