Arbitrum (ARB) continues to lead the Layer 2 market in terms of Total Value Locked (TVL), demonstrating robust demand for its scaling solutions despite concerns over token supply schedules. Today's market action sees ARB consolidating, as the market absorbs the impact of recent and upcoming token unlocks. Despite the inflationary pressure, the Arbitrum DAO is actively funding incentives to attract developers and users, which has kept the ecosystem vibrant and growing. Technical analysis of the ARB token shows it trading within a defined range. The release of the 'Stylus' upgrade, which allows developers to write smart contracts in languages like Rust and C++, is a major fundamental driver that could expand the developer base significantly. Investors are weighing the strong fundamentals of the network—high throughput and low fees—against the tokenomics. If the ecosystem continues to capture the majority of Ethereum's rollup activity, demand for governance influence via ARB could outweigh the supply inflation in the long run.