Crypto whales initiated a significant movement of ARB tokens into centralized exchanges following Arbitrum’s recent token unlocking event.
According to data provided by Lookonchain, as of March 18, 2024, 11 crypto whales transferred a total of 34 million ARB tokens, valued at $58 million, into these crypto exchanges.
As part of its structured token distribution plan, Arbitrum unlocked over 1.1 billion ARB tokens, valued at over $2.3 billion, that were allocated to development teams, advisors, and investors on March 16, 2024. The unlocked tokens were released all at once instead of in batches. This unlocking strategy, termed “Cliff Unlock,” triggered speculation that token holders might opt to sell off their holdings for profits, potentially leading to a decline in the token’s value.
This is because, according to a previous announcement, 673.50 million ARB tokens, constituting 46.42% of the circulating supply and valued at $1.37 billion, were allocated to the current and future project teams and advisors. Additionally, 438.25 million ARB tokens, making up 30.20% of the circulating supply and valued at over $889.65 million, were allocated to investors.
Indeed, on the day of the unlock, March 16, the ARB coin experienced a drop from its weekly peak of $2.22 to $1.84, according to data from CoinMarketCap.
Subsequently, on March 17, the price fell further to $1.64, marking a 7-day low. Presently, the coin is trading around $1.70, reflecting a nearly 29% decrease from its peak price of $2.39, attained on January 12.
The recent unlocking event has contributed to a 23.42% decline in ARB’s price. However, any potential price recovery may be delayed, as the Arbitrium network plans another token unlock of over 92.65 million coins on April 16, 2024.
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