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Arbitrum (ARB), the fast-growing Ethereum scaling network, saw its token plunge to a record low on Monday. The token slipped to a low of $0.80, much lower than its record high of $1.88. This decline brought its market cap to more than $1 billion.
Arbitrum’s token decline coincided with more weakness in the futures market. Data compiled by CoinGlass showed that futures open interest dropped to $99 million, the lowest level this year.
Open interest futures peaked at over $441 million in April this year as ARB price jumped. Most recently, Arbitrum’s interest rose to over $208 million in July.
Open interest is an important measure in the crypto and stock market since it shows the number of futures contracts held by market participants at the end of the trading day. A higher number shows that there is demand for an asset in the important futures market.
Like other altcoins, most of this futures open interest is held in Binance, the biggest exchange in the world. It is then followed by Bybit, Bitmex, Huobi, and OKX.
Other metrics show that activity in Arbitrum’s ecosystem is slowing down. According to DeFi Llama, the total value locked (TVL) in its DeFi ecosystem stands at over $2.6 billion, a 20% drop from a month earlier. This decline is because of the ARB price drop. In ETH terms, the TVL has retreated to 1.64 million ETH, down from its peak of 2.15 million ETH.
The same trend is seen in the active number of users in Arbitrum’s ecosystem. It now has about 126k users in the past 24 hours, down from its peak of over 286k.
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