Arbitrum Just Overtook Ethereum in Daily Activity - Is $1.24 the Next Stop for ARB?
For the first time ever, a Layer 2 has flipped its parent chain in raw transaction volume. Arbitrum—Ethereum's scaling workhorse—just processed more daily activity than the mainnet it's built upon. That's not a fluke; it's a fundamental shift in where the blockchain action lives.
The Scaling Tipping Point
Think of Ethereum as a congested downtown core and Arbitrum as the newly built, high-speed bypass. Everyone knew the traffic would eventually move, but the speed of the switch is still startling. Developers and users are voting with their gas fees, choosing cheaper, faster execution without sacrificing Ethereum's bedrock security. The narrative of 'L2s as the future' just got a massive, tangible data point.
Price Implications: Beyond the Hype Cycle
So what does this mean for ARB's price? Utility drives token value, and utility is exploding. If activity sustains, the fee revenue flowing through the ecosystem creates a stronger fundamental case than any meme-fueled rally. The $1.24 target isn't just a line on a chart; it represents the market repricing ARB from a 'speculative tech bet' to a 'core infrastructure asset.' Of course, in crypto, fundamentals sometimes take a backseat to pure sentiment—traders might just see a juicy headline and buy the rumor, as they often do.
A Cynical Take for the Realists
Let's be real—the 'number go up' crowd will latch onto this news like it's a holy prophecy. Never mind the complex mechanics of sequencer fees and tokenomics; a bigger number than Ethereum is all the due diligence some need. It's the financial equivalent of seeing a crowded restaurant and assuming the food must be good, ignoring the possibility they just ran a two-for-one coupon.
The bottom line? Arbitrum's activity milestone is legitimately significant. It validates the entire L2 thesis. Whether that directly translates to ARB hitting $1.24 depends on if the market is in a mood to reward utility or is still busy chasing the next shiny object. The chain is doing the work. Now we see if the token gets the credit.
ABR Technicals Suggests Increasing Bullish Strength
Technically, Arbitrum (ARB) is operating on the 4-hour chart, charting prices from mid-December 2025 to early January 2026. The prices plummeted from $0.2100 to $0.1730, then rallied back, ranging between $0.1850 and $0.1950. The latest candles show vigorous bullish pressure, advancing the prices to $0.1987, implying a takeover by the bulls.
Source: TradingView
This is further confirmed by the technical indicators. The RSI has indicated 64.71, which is close to 70, thereby indicating that it is entering the overbought region. Additionally, the MACD has indicated that its zero line has been crossed by its line, thereby enabling its histogram to indicate 0.00066, which is positive. This indicates that there is buying pressure.
Arbitrum (ARB) Eyes $1.24 Following Strong Accumulation
Moreover, the crypto analyst, Jonathan Carter, highlighted that Arbitrum (ARB) is now on the rebound after it tested the critical level in the 3-day chart. The accumulation zone continuously attracts more buyers, and this helps to build a strong bullish trend. The level has mostly attracted the attention of traders as a base that has the ability to drive the prices higher.
Source: Jonathan Carter on X
The bounce targets are more clearly established at $0.25, $0.40, $0.63, $0.92, and $1.24. The bulls are aggressively building a position, indicating increased conviction about the token’s recovery. If this pace is maintained, the ARB is likely to rise towards these levels, indicating strong bullish momentum.
Also Read: Arbitrum’s ArbOS Dia Boosts Network Strength as ARB Eyes $0.32 Resistance
