Arbitrum (ARB) Price to Hold $0.90 Support as Investors Raise $215M

Arbitrum price found support at the $0.94 level on June 12, after spending the last 15-days in steady decline, ARB market data shows how investors have reacted to the team’s latest $215 million gaming ecosystem fundraising. 

Arbitrum Foundation announces $215 Million Fund for Gaming Ecosystem

The Arbitrum Foundation, which supports the Ethereum-based Layer 2 network Arbitrum, has announced a significant investment aimed at fostering the gaming industry within its ecosystem.

Over the next three years, the foundation will allocate 225 million Arbitrum (ARB) tokens, valued at about $215 million, to the newly created Gaming Catalyst Program (GCP).

This initiative, which received approval on 7 June, seeks to enhance the adoption and use of Arbitrum, Orbit, and Stylus among game developers and gamers.

The proposal, originally introduced in March, garnered strong support from notable organizations such as L2Beat, Wintermute, and Treasure DAO, despite opposition from entities like Blockworks Research and Camelot DAO.

In reaction Arbitrum price has found a new wave of demand that halted it 2-week long downtrend on June 12.

The chart above shows how ARB price had declined 30% in the last 15 days, tumbling from $1.27 on May 27, to hit a 40-day low of $0.94 on June 11.

But following the news of the $215 million fundraise that will see Arbitrum develop its own gaming ecosystem, ARB price recorded significant demand surge on June 12, rising 5% to hit a daily timeframe peak of $0.98.

Treasure DAO, celebrating the initiative’s passage, highlighted Arbitrum’s potential as a key player in the gaming sector. The GCP aims to support both emerging and established game developers.

Grants up to 500,000 ARB (approximately $483,000) will be available to new and early-stage developers, while more seasoned developers can seek investments involving value-sharing components like tokens or equity. Funds will also be allocated to infrastructure-related bounties and operational costs to support the broader ecosystem.

Additionally, the GCP has set a cap of $25 million for operational expenses, with any expenditures beyond this limit requiring DAO approval. The Arbitrum DAO decided in March against funding the legal defense of Tornado Cash developers Roman Storm and Alexey Pertsev.

ARB Price Forecast: Bulls Hint at $1.20 Retest

Arbitrum price is edging towards reclaiming the $1 territory at the time of writing on June 12. However, with the positive sentiment triggered by the $215 million fundraised, bulls are now likely to extend the rebound phase towards the $1.20.

In support of this bullish ARB price forecast, IntoTheBlock’s GIOM data shows that the next major resistance cluster now lies at the $1.10 level.

As seen below 32,570 addresses had acquired 735,980 ARB at the average price of $1.07. If the opt to exit early, Arbitrum price could struggle to break past the $1.10 resistance.

But if the bulls garnered sufficient momentum to flip that looming sell-wall, a $1.20 retest could be on the cards as predicted.

On the flipside, if the markets take a negative turn, bull will likely mount a major support buy-wall at the $0.90 area.