Arbitrum extended its powerful rally on Friday, climbing 31% and approaching the $0.2300 level as interest in tokenized real-world assets continued to grow.

ARB has now advanced for four consecutive sessions, lifting its weekly gain above 70%. 

The surge coincides with a new US regulatory framework for trading tokenized stocks and record tokenized-fund value on the Arbitrum network.

The rally also means that Arbitrum has outperformed the other leading cryptocurrencies, including Bitcoin, Ethereum, XRP, and Solana. 

SEC exemption boosts tokenization outlook

The US Securities and Exchange Commission granted qualifying tokenized securities venues a five-year conditional exemption on Thursday.

The exemption allows eligible platforms to facilitate trading in tokenized National Market System stocks using automated market makers and permissioned liquidity pools. 

The framework could support round-the-clock trading and faster settlement of eligible assets.

Participating venues must comply with conditions that include using auditable smart contracts on public permissionless blockchains and observing limits on trading activity.

Although the exemption was not awarded directly to Arbitrum, the Ethereum Layer-2 network could benefit if regulated platforms choose it as infrastructure for tokenized securities.

Arbitrum offers lower transaction costs and faster processing than Ethereum’s main network while inheriting much of its security. These features have helped position it as a potential settlement layer for real-world assets.

The value of tokenized funds deployed on Arbitrum reached an all-time high of $979.93 million on Friday.

https://twitter.com/arbitrum/status/2100693375838048586

The total includes tokenized credit funds, US and international Treasury bills, and various yield-generating strategies.

The increase indicates growing demand for blockchain-based representations of traditional financial assets. It also brings the value of tokenized funds on Arbitrum close to the symbolic $1 billion threshold.

Further institutional adoption could support network activity and demand for Arbitrum’s infrastructure, although growth in tokenized assets does not automatically translate into sustained appreciation for the ARB token.

ARB tests critical resistance at $0.2305

Arbitrum’s short-term technical outlook remains bullish, with ARB trading comfortably above its major moving averages.

The 50-day, 100-day, and 200-day exponential moving averages stand at $0.1224, $0.1104, and $0.1236, respectively. 

Holding above all three indicators suggests buyers remain in control of the broader trend.

ARB is now testing resistance near $0.2305, corresponding to the top of its current Fibonacci range. 

A confirmed daily close above that level could extend the rally toward the 127.2% Fibonacci extension at $0.3181.

Momentum indicators support further upside but also warn that the rally may be stretched. 

The Moving Average Convergence Divergence indicator has crossed above its signal line, while the Relative Strength Index has reached 75.

An RSI above 70 indicates overbought conditions and raises the likelihood of short-term profit-taking.

If ARB fails to clear $0.2305, initial support sits at $0.1788. A deeper correction could bring the 50% Fibonacci retracement near $0.1274 back into focus.

However, with the bulls still in control, ARB could extend its rally in the near term.

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