On Monday, the tie-up between Robinhood and Arbitrum provided positive speculation after an X post and led to a 17% increase in the token value of Arbitrum, a Layer-2 scaling solution for the Ethereum Blockchain.
The speculation around a tie-up between the two platforms offers the users of Robinhood with access to the layer-2 network of Arbitrum, essentially exposing a high user base to Arbitrum’s technology, along with increasing demand for the ARB token.
According to a Bloomberg report, Robinhood, a financial service entity that offers an online platform for cryptocurrency and trading stocks, was developing a blockchain platform to help the investors of Europe to trade US stocks, with Solana and Arbitrum being intended.
Eric Connor, the former core developer of Ethereum, said through X that Robinhood selects Arbitrum as the blockchain.
Similarly, on Sunday, Robinhood wrote on X- A.J.Warner, a OffChain Lab’s Chief Strategy Officer, Johann Kerbrat, General Manager, and Vice President of Robinhood Crypto, and Vitalik Buterin, co-founder of Ethereum, come together for a conversation in a Robinhood Europe Cannes event in France, where the entity markets as revealing its top crypto announcement of the year. This announcement helps to support cross-chain swaps as well as other potential features within the Robinhood Wallet.
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Token Value and Speculation
The tie-up between Arbitrum and Robinhood mainly concentrates on boosting quicker and easier crypto swaps for the users of Robinhood, and this partnership also leads to enhanced adoption as well as investment flows into the crypto landscape as similar to traditional investors communicating with the DeFi space via Robinhood.
According to CoinGecko, in the last 24 hours, the token value of Arbitrum has increased by 17.1% to trade just over 36 cents, and it became yesterday’s top gainer in the crypto market.
At the time of the X post of Robinhood, Arbitrum gained around thirty-one cents to hit an intraday high of thirty-eight cents 8 hours later. The speculation impacts improved exposure and access to technology of Arbitrum via the platform of Robinhood.
Controversially, the ARB token has encountered a significant decline this year and has fallen 50%. Since the Arbitrum reached a value of $2.39 (peak high) in 2024, it has lost 85% of its token value, according to market news platforms.
During the overnight trading session, HOOD, a stock ticker symbol for Robinhood Markets, gained high shares due to speculation on Robinhood and Arbitrum collaboration. This leads traders to be optimistic regarding the upcoming prospects of the firm and enhanced demand for its stock.
This overnight lifting of shares in Robinhood has a high impact on the market, causing investors to buy shares, which in turn boosts the price upwards.
According to the 24-hour market on rival eToro, after closing trading at $83.03 on Friday, HOOD estimates 1.65% in overnight trading to $84.26.
