Arbitrum's native token, $ARB, has seen a 10% surge in price over the past day, reaching a two-week high of $0.085. The altcoin's volume jumped 118% to $105 million, indicating strong market participation. This increase comes on the back of positive news from the Arbitrum team, which announced that 10% of fees collected on Robinhood Chain and other Arbitrum L2s will be directed towards the Arbitrum ecosystem.
According to Steven Goldfeder, a member of the Arbitrum team, 8% of these fees will go to the tokenholder-controlled treasury and 2% for development. This approach is designed to counter market inflation that has been weighing heavily on $ARB. However, with 92.63 million $ARB worth approximately $7.6 million set to enter circulation after unlocks this month, the team's efforts may be hindered in the short term.
The Robinhood Chain has experienced massive growth since going live, reaching record-breaking usage levels. In July, DEX trading volume on Robinhood surged to a high of $560 million, driven by over 140K new addresses. As a result, chain fees and revenue have increased significantly, with App Fees reaching $2.36 million on the 8th of July.
The Arbitrum team is hoping that these rising fees will provide a lifeline for the project, offsetting market inflation. However, with the promised ecosystem investment still to be realized, it remains unclear whether this momentum will hold.