Morpho reported on Thursday that deposits linked to tokenized real-world assets (RWAs) on its protocol have exceeded $750 million, marking a notable milestone for on-chain finance.
Arbitrum emerged as the leading network in this growth, with syrupUSDC deposits on the layer-2 blockchain reaching $166 million, according to data shared by the Arbitrum team.
For tokenized assets to be successful, there is a need for high reliability, high throughput, and low costs. This is the reason why most businesses are opting to use Arbitrum, which is known for being efficient.
As tokenization develops, Morpho and Arbitrum are showing that blockchain is not just for speculation; it’s actually for financial markets.
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Yet, while showing positive signals for ecosystems, ARB’s token still does not seem to be showing positive signals for prices. As of now, ARB’s token seems to be caught in a consolidation phase around the support zone near the lower part of its falling channel, as seen on the 3-day chart.
The zone indeed seems to have eyes on it, indicating that a tremendous buying effort is being made to hold ground. This also indicates that bulls believe that ARB’s token will turn around and change its current course.
However, if ARB can bounce off this level, it will have a good shot at rising to much higher prices. As for where ARB currently trades, that value sits around $0.18. As a matter of fact, long-term forecasts have ARB rising to a target level that sits around $2.80. As analysts have pointed out, volume signals must also be watched.
On the weekly chart, the RSI for Arbitrum is at 34.05, which is just shy of its moving average at 36.08, and thus still some way off the oversold zone. This reading suggests that the asset still has some downward momentum, although the selling may be running its course.
Meanwhile, the MACD also signals a weakening downtrend as the MACD line reads -0.06397, while the signal line reads -0.06041. The bearish bars on the histogram also decrease in size, indicating that the downtrend continues to slow down.
A change in the MACD signal may signal an early indication that Arbitrum may experience an uptrend in the near term.
The uptrend in tokenized real-world assets deposited on Arbitrum indicates that blockchain technology adoption is progressing towards useful financial infrastructure, rather than speculative financial activities.
The gap between rising RWA deposits on-chain and weak price performance of ARB reflects lagging financial market sentiment.
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