Arbitrum (ARB) coin has succeeded in stopping its downward rally and experienced a notable surge, attracting strong bids around the $1.14 level. However, the upward rally can be attributed to recent developments within the Arbitrum DAO, which have addressed a significant obstacle.

It is worth noting that DAO made a commendable move by committing to locking 700 million ARB tokens, valued at approximately $770 million, into a vesting contract. This strategic decision aims to promote transparent governance and accountability, as the community proposes.

Hence, this announcement is anticipated to have a positive impact on the Arbitrum (ARB) coin. as the DAO’s commitment reflects a strong dedication to the project’s long-term growth and stability, which is likely to be perceived positively by investors and market participants, enhancing the token’s intrinsic value.

Arbitrum Price

Arbitrum’s current price is $1.14, with a 24-hour trading volume of $183,548,084. Arbitrum has increased by 3.70% in the previous 24 hours. Arbitrum is now ranked #35, with a live market cap of $1,449,083,182. It has a circulating circulation of 1,275,000,000 ARB coins.

Arbitrum
Arbitrum Price Chart – Source: Tradingview

This move comes after a period of contention in the Arbitrum ecosystem, which involved disagreements over internal governance and a controversial proposal for a “special grants” program.

However, the new commitment, AIP 1.1, aims to resolve transparency concerns by gradually releasing locked tokens to the Arbitrum Foundation over four years.

It grants the DAO the authority to modify the vesting period as needed. This action demonstrates the DAO’s dedication to decentralized decision-making and reinforces its commitment to financial transparency.

Therefore, the decision to secure such a significant amount of ARB tokens through a vesting contract carries multiple implications for Arbitrum. Firstly, it establishes a reliable and consistent funding source for the Arbitrum Foundation, demonstrating the project’s dedication to transparency and accountability.

Additionally, the locked tokens can potentially influence the market dynamics of the ARB token by reducing its overall supply. The ARB token has witnessed an upward trend of more than 3% in the past 24 hours.

Weaker US Dollar Underpins ARB Price

Another factor underpinning the Arbitrum coin prices was the bearish US dollar, which lost traction on Friday after signs of a less resilient US labor market. This, in turn, reduced expectations regarding how long the Federal Reserve would maintain higher interest rates.

According to the Labor Department, the US economy added the fewest jobs in June in two and a half years. The employment report also revealed a downward revision of 110,000 jobs created in April and May compared to earlier estimates.

Furthermore, an increase in the number of people working part-time for economic reasons indicated a weaker labor market. Despite these factors, the pace of job growth remains robust, and with inflation still above the Fed’s target rate, a rate hike this month is likely.

So, the weakening of the US dollar has played a role in bolstering the value of the Arbitrum coin, offering favorable conditions for its performance in the market.

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