Arbitrum Price Drops Following Major Release

Arbitrum logo

Arbitrum (ARB), a Layer 2 token, plummeted 14% immediately after more than a billion tokens were released onto the market. According to the website, ARB traded at $1.9 on March 16. However, prices began to fall sharply following the projected conclusion of the token supply release.

Token Unlocking Event in ARB

An examination of token unlocking data revealed that the team, prospective team members, and investors received around 76% of ARB’s entire circulating supply, which surpasses $2 billion. Most of these recipients acted fast to benefit from their tokens. According to Spot On Chain, six wallets sent 8.95 million ARB to Binance within hours of the unlock, with over 32 million tokens left in these wallets, which might lead to further deposits in the coming days and likely more downside.

Santiment, a cryptocurrency analytics startup, analyzed the behaviour of ARB whales. Notably, sales above $1 million peaked on March 16. However, it was discovered that most huge whales accumulated ARB rather than selling. However, wallets holding 100,000 to 100 million tokens grew dramatically on the same day. These user groups began stockpiling tokens in the days leading up to the unlock, which might reflect a positive outlook on ARB’s prospects. With prices falling, time will tell if these whales will continue to accumulate or dump their holdings.

Increase in Active Addresses on ARB

Furthermore, ARB’s on-chain activity rose dramatically as a result of the unlocking event. On March 16, around 330,000 unique addresses were active, which might represent a 13,000 increase over the previous day. Furthermore, the number of new addresses on the network has surged by 77%. This data demonstrates individual enthusiasm and widespread acceptance of the token.

As a result, while Arbitrum dropped 14% after the intended end of the token supply release, the rapid market introduction of a large quantity handed to the team and investors, along with increased on-chain activity, had a considerable impact on pricing.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.