A fresh group of large-scale investors in Arbitrum have decided to move their coins into exchanges after a significant number of vested tokens were released earlier this month. On March 23, Lookonchain, a blockchain data platform, identified four additional wallets that transferred ARB tokens into exchanges following the $2.32 billion token unlock on March 16. These whales carried out four separate transactions, transferring a total of 11.34 million ARB tokens to Binance. At the time of the transfers, these assets were valued at $18.5 million.
According to Lookonchain, the cryptocurrency community has mixed opinions about these recent fund movements in Arbitrum. While one user believes this is not a bearish sign, another user is skeptical about ARB’s potential to increase in value.
This event comes after another batch of transfers last week, when 11 whales deposited ARB tokens into exchanges. On March 18, Lookonchain reported that these whales moved $58 million worth of ARB tokens into exchanges.
These transfers occurred after the release of $2.3 billion worth of tokens by the layer-2 blockchain project Arbitrum following the vesting period. The project allocated 673.5 million ARB tokens for its advisers and team members, while 438.25 million ARB tokens were reserved for investors. The tokens were released in a cliff unlock, meaning they were all released at once. This sparked predictions of a massive sell-off, while some remained hopeful that this would not happen.
Following the token unlock, ARB prices experienced a downward trend. On March 13, the ARB token reached a high of $2.22, but dropped to $1.84 on March 16 when the tokens were unlocked. In the past seven days, the token reached a low of $1.48 on March 19, but rose to a high of $1.79 on March 21. At the time of writing, the token’s value is around $1.70.
According to CoinGecko, a coin data tracker, ARB’s current price point is nearly 29% lower than its all-time high of $2.39 on January 12.
While the token vesting unlock has already impacted prices, it is possible that the downward trend may continue. According to the crypto vesting tracker Token Unlocks, Arbitrum is scheduled to release an additional 92.65 million ARB tokens for its advisers, team, and investors on April 16.
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