Arbitrum just staged a stunning rally from near record lows, but the real question is whether one blockchain project holds the key to its next move and whether that project is even healthy enough to help.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Arbitrum (CRYPTO:ARB) currently trades at $0.23, so it needs to rise about 335% to reach $1. This comes after a significant 155% increase since August 28, 2026. Can Arbitrum actually hit $1 again? The last time it traded near that level was in late 2024, when it closed November at around $0.97 and peaked at about $1.24 in December.
The trajectory of Arbitrum isn’t solely dependent on its movements, as Ethereum (CRYPTO:ETH), the blockchain on which Arbitrum operates, also plays a significant role. The Ethereum price only rose about 10% during the same period, suggesting that for ARB to reach $1, Ethereum may need to lead the way.
ARB’s 155% Rally Started Near a Record Low
After starting from around $0.09 on August 28, ARB experienced a remarkable 155% surge to reach $0.23, adding around 14 cents in value. In the world of cryptocurrencies, small movements can drive significant percentage changes, especially with low-priced coins.
However, we should keep this rally in context. ARB hit its all-time low of $0.07 in June and closed July at approximately $0.08. Therefore, much of September’s surge can be viewed as a “relief rally”—a bounce back after a period of heavy selling. But one strong month does not confirm a new upward trend.
Looking at the broader picture, ARB remains down. While it has climbed about 20% in 2026, it still sits roughly 47% below its $0.42 value from a year ago and about 90% below its all-time high of $2.39 in January 2024.
Why Ethereum Decides Whether Arbitrum Can Reach $1
As a layer-two network, Arbitrum processes transactions away from Ethereum’s main chain and registers the results on Ethereum for added security. This setup lets users enjoy faster, cheaper transactions while relying on Ethereum’s robust safety measures.
However, Arbitrum’s activity is closely tied to Ethereum’s ecosystem, including applications, tokens, and user engagement. When interest and trading activity on Ethereum decline, networks like Arbitrum typically see activity drop as well, often resulting in a drop in ARB’s price.
Currently, Ethereum is still trading below its previous highs. As of now, ETH is priced around $2,713, which represents a 9% decline in 2026 and a 33% drop over the past year. It remains about 45% lower than its peak of nearly $4,950 in August 2025. Notably, when ARB last approached $1, ETH traded around $3,704, suggesting ARB’s rise to $1 is likely tied to Ethereum’s performance.
Robinhood Chain and Rising Volume Could Push ARB Higher
Arbitrum’s rally in September wasn’t purely a market move, as business developments also fueled it. Robinhood launched its Robinhood Chain on Arbitrum’s technology, leading to increased transaction fees that likely contributed to ARB’s 135% increase in just one month. Furthermore, Standard Chartered has projected a target of $0.50 for ARB by the end of 2026 and an ambitious $10 by 2030.
Trading volumes have surged as well, with ARB’s monthly trading volume reaching approximately $1.5 billion by the end of September—up from about $281 million in August and $175 million in July. However, volume spikes after a crash can taper off once early investors take profits. For this rally to sustain, trading volume needs to stay near September levels.
History suggests that Ethereum rallies can be limited. For instance, while ETH climbed from around $1,794 at the end of April 2025 to $4,392 by the end of August, ARB rose only from $0.33 to $0.50 over the same period, peaking at about $0.62—far from the $1 target.
Can Arbitrum Reach $1 by the End of 2027?
The outlook for Arbitrum reaching $1 before the end of 2027 appears challenging. It requires a significant 335% increase, and its September rally stemmed from a prior record low, failing to recover from a 47% loss seen over the past year.
First, ARB needs to surpass its September high of around $0.26 and eventually reach $0.42, where previous holders might look to sell to break even. A monthly close above $0.42 by December, coupled with Ethereum regaining strength above $3,704, could make the $1 target more achievable. However, if Ethereum’s growth stalls and ARB drops below its September low of around $0.10, investors who bought at $0.23 could see significant losses.
Contact [email protected] for any questions or corrections.