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In this paper, we evaluate a new dynamic bandwidth allocation approach for multifractal traffic arrivals. For this end, first of all we derive an analytical expression for estimating byte loss probability at a single server queue based on the second order statistics for multifractal traffic processes. In order to make the estimation procedure numerically tractable without losing the accuracy, we assume and demonstrate that an exponential model is adequate for representing the variance of traffic processes under different time scale aggregation. Extensive experimental tests validate the efficiency and accuracy of the proposed loss probability estimation approach, its superior performance for admission control and link resource allocation applications with respect to some well-known approaches suggested in the literature.