Whale Investors Shift Arbitrum Coins Amid Downward Price Trend Following Token Unlock
Summary:
In the wake of a $2.32 billion token unlock in March, several 'whale' investors shifted their Arbitrum (ARB) tokens to various exchanges. This comes after last week's movement of $58 million worth of ARB tokens. The mass availability of tokens after the vesting period has led to a downward trend in ARB's value. Despite varying opinions within the crypto community, trend data indicates more vested tokens will be released in April, potentially contributing to more price decrease.
Upon the release of a significant number of vested tokens back in March, several whale accounts holding Arbitrum shifted their tokens to exchanges. Lookonchain, a blockchain data service, noted on March 23 that an additional four wallets were transitioning ARB tokens to exchanges in the wake of a $2.32 billion token unlock that took place on March 16. The four transactions, sent to Binance, totalled 11.34 million ARB tokens, valued at roughly $18.5 million at the time of the transfers, according to Lookonchain.
The crypto community has voiced divergent perspectives on these recent fund transactions involving Arbitrum. While one user saw no signs of bearish behaviour, another expressed doubt that ARB's value would experience an increase. This comes in the wake of similar activity last week, with 11 whale accounts depositing ARB into various exchanges.
Data from Lookonchain highlighted that $58 million in ARB tokens was moved to exchanges on March 18. The sudden influx of tokens on exchanges occurred only days after the layer-2 blockchain initiative, Arbitrum, unblocked $2.3 billion in tokens post-vesting period. Of these, 673.5 million ARB were earmarked for advisors and team members, with another 438.25 million set for investors. All the tokens were unlocked at once, sparking predictions of a significant dump while others hoped for the opposite.
In the weeks since the token unblock, ARB saw a downward trajectory in value. The ARB token reached a notable high of $2.22 on March 13. It then declined to $1.84 on March 16 when the tokens were suddenly available. Over the last week, the token plummeted to a low of $1.48 as of March 19, but increased slightly to $1.79 on March 21. Currently fluctuating around $1.70, ARB's value is nearly 29% less than its record high of $2.39 on January 12, as per data from CoinGecko.
Arbitrum's token vesting unlock seems to have affected prices already, but the declining value trend may continue. Token Unlocks, a crypto vesting tracker platform, indicates that Arbitrum plans to release another 92.65 million ARB tokens for advisors, team members, and investors by April 16.
Published At
3/25/2024 2:37:04 PM
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