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- Arbitrum’s weekly derivatives trading volume hit an all-time high last week.
- ARB’s value rose last month, but investors’ profits continued to fall.
Weekly trading volume for the derivatives protocol included in the major Layer 2 network (L2) Arbitrum (ARB) hit an all-time high of $18 billion last week. Dipilama showed it
According to the data provider, this represents a 17% increase in derivatives trading volume on Arbitrum in less than seven days, surpassing the $9 billion recorded by Ethereum (ETH) during the same period.
Source: DefiLlama
The decision to dethrone Ethereum
According to on-chain data, Ethereum has long been the number one chain with the highest weekly trading volume among derivatives protocols.
However, Arbitrum’s weekly trading volume surpassed Ethereum for the first time on November 26 and has continued to increase since then.
As assessed monthly, the volume of transactions completed on Arbitrum’s derivatives protocol has steadily dwarfed that of Ethereum since December 2023.
For context, Arbitrum’s derivatives trading volume totaled $45 billion during those 31 days. Ethereum lagged behind with monthly trading volume of $38 billion.
This trend continued in January, when Arbitrum ended the month with $55 billion in derivatives volume, a 22% increase in monthly volume (MoM).
During the same period, Ethereum’s monthly derivatives trading volume decreased by 18%.
As Arbitrum’s month-on-month derivatives trading volume continues to grow, data from DefiLlama shows that the multi-chain derivatives protocol’s share of monthly trading volume has surged significantly.
In December, the L2 network accounted for 39.25% of all trades executed across all derivatives platforms. By the end of January, this ratio had risen to 42.44%.
In comparison, Ethereum’s market share plummeted by 38% during the same period.
As of this month, Arbitrum’s derivatives trading volume has reached $18 billion. On the other hand, Ethereum’s derivatives protocol trading volume is only $16 billion.
ARB rises as market shows traction
At press time, L2’s governance token ARB was trading at $2.04. The altcoin’s value has risen nearly 10% in the past month, according to data from CoinMarketCap.
An assessment of the Funds Flow Index (MFI), a key momentum indicator, explained the price gains. At press time, ARB’s MFI figure was 84.25, confirming the increase in altcoin demand.
Source: ARB/USDT on TradingView
However, despite the price increase last month, the profitability of ARB holdings showed a downward trend during the same period.
Read Arbitrum (ARB) Price Prediction for 2024-25
AMBCrypto assessed the Alt’s 30-day Market Value to Realized Value (MVRV) ratio and found that it has been trending downward since January 2nd.
Source: Santiment
According to data from , this figure stood at 4.18% at press time, but has since declined by 90%. st tly.