- Arbitrum and Optimism have seen a decline in TVL.
- ARB and operating profit take a short break and then resume their downward trend.
Arbitrum (ARB) and Optimism (OP) continue to lead the L2 space with the highest total value locked. However, TVL has recently decreased. Given these developments, what are the current trends in network size?
TVL decreased in Arbitrum and Optimism.
Analysis of the L2 Beats charts over the past 24 hours shows a decline in the Total Value Locked (TVL) of Arbitrum and Optimism.
Arbitrum’s TVL is down nearly 9% at the time of this report, while Optimism’s is down more than 12%.
Despite this significant drop, rankings relative to other L2 platforms are not affected. Currently, Arbitrum maintains control of TVL of more than 49%, with a total value of over $10 billion.
Optimism has TVL commanding nearly 25% control with more than $5 billion.
The volume fades away.
DefiLlama’s Arbitrum trading volume chart showed a notable volume surge early this year. The chart shows that volume exceeded the $1 billion threshold several times during the month.
The volume of first-time entries into this zone was approximately 1.8 billion, an all-time high. However, trading volume has since decreased, reaching approximately $542 million as of the current analysis.
Similarly, analysis of the Optimism volume also shows parallel patterns.
At the start of the year, trading volume increased significantly, reaching $184 million. However, over time, its size has decreased and currently stands at approximately $48 million. This decrease in trading volume is used as an indicator of decreased trading activity on both networks.
ARB and OP witness refusal
On the Arbitrum daily time frame chart, a brief pause in the downtrend was observed on January 24, during which time the value increased by about 2.8%.
However, the current situation reflects a return to the downward trend, with a decline of more than 4%. ARB is currently trading around $1.6.
Despite the relative strength index (RSI) and moving average convergence divergence (MACD) sending bearish signals, the price remained above the short-term moving average (yellow line).
Source: Trading View
Realistic or not, ARB’s market cap in BTC is:
In contrast, all indicators of optimism showed a bearish trend.
At the time of writing this report, it was trading at $2.7, down about 2.7%. Additionally, the RSI is trending downward below the yellow and neutral lines, indicating bearish sentiment.
Source: Trading View