Arbitrum, a prominent layer-2 blockchain project, recently unlocked 1.1 billion ARB tokens, worth $2.32 billion, for its team, advisors, and investors. Following the recent token unlock by Arbitrum, whales initiate a significant movement of digital assets to exchanges, impacting market dynamics.
Arbitrum whales trigger market turmoil
Blockchain analysis firm Lookonchain has observed substantial activity among whales, with at least 11 major holders depositing a collective 34 million tokens valued at nearly $58 million into exchanges. This development has stirred considerable attention within the cryptocurrency community.
The ‘Cliff Unlock’ approach adopted by Arbitrum, releasing tokens all at once, has led to speculation regarding short positions against the token. Concerns over potential downward pressure on prices materialized as ARB token prices experienced notable declines in the lead-up to and aftermath of the unlock.
From a high of $2.22, the token plummeted to $1.84 on the day of the unlock, further dropping to $1.64 on March 17, marking a seven-day low. Presently, the token is trading around $1.70, reflecting a substantial decrease from its previous highs.
Future uncertainties and token release schedule
As the market adjusts to the unlocked tokens, stakeholders brace for further challenges. Token Unlocks data reveals that Arbitrum is scheduled to release an additional 92.65 million tokens on April 16.
These tokens, valued at approximately $157 million based on current market prices, will be distributed simultaneously to the project’s team, advisors, and investors. The impending release adds to the prevailing uncertainties surrounding ARB token dynamics.
The movement of ARB tokens by whales to cryptocurrency exchanges following Arbitrum’s recent unlock event underscores the immediate impact of token releases on market dynamics. With significant volumes of tokens in play and additional releases on the horizon, stakeholders must navigate evolving market conditions with caution. As the cryptocurrency community continues to monitor developments, the implications of these movements on the broader ecosystem remain a subject of keen interest and analysis.
