Today's Arbitrum news: The $40 million DRIP incentive program has officially launched, promoting DeFi leverage cycle strategies and ecosystem TVL rise.

Arbitrum officially launched the "DeFi Revival Incentive Program" (DRIP) on September 3, with a total amount of 40 million USD, aimed at incentivizing users to participate in lending and leveraged cycling strategies through ARB token rewards, thereby enhancing the ecosystem's TVL. The first season of the activity will last until January 20 next year, and users can earn rewards by depositing qualified assets and cycling loans in protocols such as Aave and Morpho. Meanwhile, the ARB token is currently priced at 0.48 USD, maintaining the key support level of 0.45 USD, with on-chain trading volume increasing by 18% within 24 hours, and the fundamentals continuing to improve.

DRIP Program Details: Seasonal Incentive Leverage Cycle and Asset Supply

The DRIP program is managed by Entropy Advisors and supported by Merkl's technology. It is divided into four seasons with a total budget of 80 million ARB Tokens. The first season focuses on the leverage cycle strategy in the DeFi lending market—users can deposit qualified ETH and stablecoin assets (such as syrupUSDC) as collateral, borrow more assets, and swap back to the original assets for reinvestment. By operating in cycles, they can expand their exposure and earn ARB rewards based on the time-weighted average borrowing balance.

Some markets also reward the act of simply supplying assets, such as providing ETH derivatives (weETH, wstETH, rsETH) or stablecoins. Participation requires first bridging qualified assets to Arbitrum One and selecting a partner market (including Aave, Morpho, Fluid, Euler, Dolomite, and Silo, etc.), with a reward cycle every two weeks.

Stage Allocation and Ecological Goals: Competitive Incentives Promote Liquidity Rise

The first two cycles are planned as the "discovery phase," allocating only 15% of the total budget to identify the best-performing markets; the subsequent "performance phase" will tilt more incentives toward leading markets, maximizing Arbitrum DeFi ecosystem liquidity through healthy competition. According to DefiLlama data, Arbitrum's current TVL is approximately $3.21 billion, ranking seventh among global DeFi chains (market share 2.1%), just behind Base.

(Source: DefiLlama)

ARB Price Trend: Key Support at $0.45 Becomes the Bull-Bear Divide

ARB is currently priced at 0.48 USD, down nearly 3% in the last 24 hours, with a market cap of 2.52 billion USD. Over the past month, the token has fluctuated between 0.45 and 0.60 USD, with 0.45 USD becoming an important support level. If this level holds, the price may attempt to reach the resistance zone of 0.52 to 0.55 USD again; if it fails, it may further drop to 0.40 to 0.38 USD (61.8% Fibonacci retracement level).

Analyst The Fuda pointed out that the 4-hour chart shows that a pullback structure may form, but in the medium to long term, they remain optimistic about ARB rebounding to target levels of 0.86 dollars and even 1.19 dollars.

On-chain data and risk indicators: solid fundamentals, controllable bubble risk

Despite the price consolidation, Arbitrum on-chain activity remains active:

• 24-hour volume reached 2.5 million transactions, a rise of 18%;
• The number of active wallets remains stable at over 370,000;
• The demand for stablecoin settlement is strong, supporting ecosystem liquidity.

The bubble risk index is currently at 1.24 (rated "normal operation" by Into The Cryptoverse) and has not yet entered the danger zone (historical volatility often begins at above 1.5).

Conclusion

The DRIP program aims to introduce new liquidity into the Arbitrum DeFi ecosystem through real monetary incentives, which is expected to further solidify its position as a leading Layer 2. Although ARB faces adjustment pressure in the short term, on-chain activity remains robust and ecological development is positive. The defense of the $0.45 support level will be crucial for the subsequent trend. Investors should pay attention to participation opportunities in the incentive program and whether the Token price can break through leveraging this momentum. This $40 million incentive program will undoubtedly inject new vitality into the DeFi sector, helping users discover Alpha opportunities while also contributing to the continuous development of the crypto industry.