What is ARROW Coin and How Does Arrow Markets Work?

Arrow Markets is a decentralised options trading protocol on Avalanche aiming to deliver an efficient yet trustless way to trade options. 

At the heart of this protocol lies ARROW Coin, the native token tied to the platform’s trading, governance, and settlement features. But with low trading activity and liquidity warnings now showing on most dashboards, is this still a project to watch? 

In this article, we take a look at what Arrow is building, what the ARROW token represents, and how users can track it more safely using Bitrue Alpha.

Understanding Arrow Markets and Its Options Trading Model

Arrow Markets is not just another decentralised exchange. It focuses entirely on one of the most complex areas in finance, options. 

Through its unique architecture built on Avalanche’s C-chain, Arrow Markets allows users to create and settle options on crypto assets like AVAX, ETH, and BTC without relying on traditional middlemen.

The core technology behind Arrow is its RFQ system, short for Request for Quote. Rather than relying on an automated liquidity pool, Arrow lets users request quotes from market makers. 

These makers respond via API, allowing the system to offer efficient pricing without sacrificing decentralisation. Settlement is handled using Chainlink Automation nodes, ensuring transparency and reliability.

What also makes Arrow Markets unique is its hybrid nature. While decentralised at its core, the RFQ structure adds a layer of efficiency typically seen in centralised markets. 

Traders benefit from self-custody, clear price discovery, and the ability to use structured products like call spreads and put spreads, something rarely seen in DeFi.

For those new to options, the platform even includes a “Lite Mode” where users can simply choose whether they are bullish or bearish, select a price target, and receive recommended strategies. 

For advanced users, the “Pro Mode” opens access to full option chains for buying or selling puts and calls.

Read more: Understanding the Trading Model of TreasureFun's Platform

What Role Does the ARROW Coin Play in the Ecosystem?

ARROW Coin is the native token of Arrow Markets. While the project has not yet published a full breakdown of utility features like governance or staking, ARROW appears to serve as a settlement and operational token within the ecosystem. 

It may also be used to incentivise liquidity and participation once more trading volume is established.

Currently, the token trades at around $0.00207, according to GeckoTerminal. Liquidity is low, and the token has seen a steep decline from earlier trading levels above $0.10, with the daily volume now showing 0% activity on multiple timeframes. 

That said, this should be interpreted with care. Many early-stage protocols go through periods of low activity before scaling.

It is important to note the warning displayed on GeckoTerminal: the trading pair for ARROW is currently sitting in a low liquidity pool. 

This means that prices can shift drastically with small trade sizes, and users could experience slippage when buying or selling. This is not unusual for a niche infrastructure token, but it is something to be aware of.

Despite this, Arrow Markets is still actively maintained. Its core team, formed by financial economists from Cornell and IC3 (Initiative for Cryptocurrencies and Contracts), has shown academic and technical depth. 

The name “Arrow” itself is a reference to Nobel laureate Kenneth Arrow, whose work on contingent claims underpins the idea behind options markets, a nice philosophical touch that adds meaning to the brand.

So while the ARROW token is currently quiet, the protocol behind it is sophisticated. If the team continues to develop and volume eventually grows, the token could regain relevance as a settlement layer or governance asset within the platform.

Read more: How to Start Trading Futures - Guide for Beginner

Should You Watch ARROW Coin and Arrow Markets in 2025?

Arrow Markets is not trying to compete with mainstream meme coins or high-volume decentralised exchanges. 

It’s a niche tool aimed at a specific audience, traders who want to engage in structured options trading on-chain. This makes it less likely to see daily hype, but also less likely to vanish overnight.

That said, there are areas of concern. The project is currently under the radar, with very limited trading activity, low liquidity, and little retail awareness. Tokens like this can stay dormant for long periods, especially during times when other narratives dominate the market.

However, the technology being built is real. The RFQ system, integration with Chainlink, and hybrid execution model make Arrow Markets genuinely different from other DeFi platforms. 

If interest in decentralised options grows again, especially on chains like Avalanche, Arrow is well positioned to benefit.

For now, prospective users should approach ARROW Coin with caution. Only invest or trade if you understand the risks tied to thin liquidity and early-stage projects. 

That said, if you are looking for experimental infrastructure plays with solid academic backing, Arrow is worth keeping on your watchlist.

To follow projects like this more safely and stay ahead of emerging narratives, Bitrue Alpha offers a powerful tool for tracking early market signals.

Read more: What is a Premium in Trading? Your Guide to More Profit

Discover ARROW and Similar Tokens Using Bitrue Alpha

Bitrue Alpha is a discovery and tracking feature within the Bitrue app, designed to help traders identify early-stage projects and low-cap coins showing potential. 

Rather than relying on social media or gut feelings, Bitrue Alpha gives you data-backed insights by scanning trading patterns, wallet activity, and volume changes across blockchains.

If ARROW becomes active again or gains new listings, it will appear in the Alpha section with real-time stats. You can monitor momentum, track token movement, and enter trades directly from your Bitrue balance using USDT or other pairs.

What makes Bitrue Alpha especially useful for tokens like ARROW is the way it highlights projects that are just beginning to move. 

When liquidity improves or when an ecosystem update draws attention, Bitrue Alpha is often the first to reflect that change. It’s ideal for users who want to experiment without getting caught in illiquid or inactive positions.

To get started, open the Bitrue app, head to the home screen, and tap on Alpha. From there, search or filter tokens like ARROW based on growth signals and volume shifts. It’s a cleaner and more secure way to navigate new tokens in a fast-moving market.

Read more: How to Manage Trading Burnout, Causes of Brainrot

Conclusion

ARROW Coin supports Arrow Markets, a decentralised options trading protocol on Avalanche built with real financial logic and academic depth. While the token is currently low in liquidity and trading volume, the project itself remains technically sound and innovative.

If interest in decentralised derivatives returns, and if Arrow’s RFQ system gains adoption, ARROW could regain relevance in the ecosystem. 

To follow its progress and trade tokens like it more safely, Bitrue Alpha offers a smarter, real-time discovery tool designed to guide you through early-stage opportunities.

Frequently Asked Questions

1. What is ARROW Coin used for?

ARROW Coin powers Arrow Markets, a decentralised options protocol on Avalanche. It is expected to support settlement, governance, and incentives within the platform.

2. Why is ARROW Coin low in liquidity?

ARROW is an early-stage token with limited trading activity. Low liquidity can cause price swings, but it is common for experimental infrastructure tokens.

3. How can I track ARROW Coin safely?

You can use Bitrue Alpha inside the Bitrue app to track ARROW and similar tokens. It shows real-time volume, activity, and trading sentiment to help you stay informed.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.