In the ever-evolving world of cryptocurrency, significant token unlocks can ignite substantial market movements and investor responses. Arbitrum (ARB), a prominent player in blockchain technology, recently unlocked a substantial 1.1 billion tokens valued at $2.32 billion as of March 16.
This unlocking event, intended to distribute tokens among Arbitrum’s team, advisors, and investors, has sparked a flurry of activity within the market.
Large holders of ARB, known as whales, have promptly reacted to the availability of these tokens. They have begun swiftly transferring their digital assets to various cryptocurrency exchanges, indicating potential market shifts and changes in investor sentiment.
Whale Activity Arbitrum Post-Unlock
Following the token unlock, Lookonchain, a blockchain analytics firm, identified a significant shift among major ARB token holders.
Post-unlock, at least 11 whales were noted depositing their tokens into exchanges, collectively moving 34 million ARB tokens valued at nearly $57 million. This active movement hints at a strategic move by these whales, possibly indicating a bearish market sentiment.
The unlock event, executed as a “Cliff Unlock,” saw the immediate release of all tokens, often leading to increased selling pressure as holders, including team members and initial investors, aim to realize profits.
Despite community optimism, ARB did not buck the trend of price drops following major unlock events. While some hoped for a price surge, ARB’s value declined post-unlock.
ARB Price Drops Over 20%
Following the unlock, the price of ARB tokens experienced a significant decline. From its peak of $2.22 on March 13, the token dropped to $1.64 by March 17, marking a 23% decrease. Its current value hovers around $1.63, reflecting a noticeable drop from its all-time high of $2.39.
Although the Layer-2 protocol’s token was already showing signs of decline, it experienced a significant breakthrough, plummeting further with considerable momentum.
This decline resulted in ARB slipping below the $1.685 mark, marking its first dip below this threshold since early February. As of the latest data from TradingView, the price is currently trading at $1.6935.
Arbitrum is set to release another 92.65 million tokens on April 16, valued at approximately $155 million at the current market price. This upcoming release could further impact the token’s price and market dynamics, contributing to the uncertainty surrounding Arbitrum’s tokenomics and market performance.
It’s worth noting that the recent price declines in the cryptocurrency market aren’t unique to Arbitrum. Several major cryptocurrencies, including Bitcoin and Ethereum, have witnessed significant downturns over the past few days.
Bitcoin, for instance, has shed over 5% of its value in one week, tumbling from its recent peak of $73,794 to $67,961 as of the latest update.
Similarly, Ethereum has seen a decline of more than 14% over the same period, dropping from $4,095 to $3,501. These two cryptocurrencies have led the market correction following a strong uptrend in recent weeks.