Whales Move $58M in Arbitrum After Token Unlock, Sparking Market Fears

Arbitrum community members fear that the $58 million token transfer to exchanges could cause ARB price to dump. 

Arbitrum whales have moved 34 million ARB tokens, worth about $58 million into various crypto exchanges, raising concerns over a potential dump. This development comes following the network’s unlocking of a substantial portion of vested tokens earlier this month. 

Arbitrum Token Unlock 

On March 16, the layer-2 blockchain project, Arbitrum, conducted a massive token unlock, releasing 1.1 billion ARB tokens valued at $2.32 billion. The tokens were distributed to Arbitrum’s team members, advisers, and investors. 

According to crypto vesting tracker Token Unlocks, 673.5 million of these tokens were unlocked via a “Cliff Unlock,” which means they were all released at once. The influx of unlocked tokens sparked concerns among investors, with some predicting that many holders would take short positions against the token. 

Notably, the token unlock which some in the crypto community hoped would boost ARB price did the opposite. ARB prices dropped from a high of $2.22 it recorded on March 13 to $1.84 on the day of the unlock. The token plunged further the following day to  $1.66. 

At press time, the token trades at $1.73, which is about 29% below its all-time high of $2.39, which it achieved on January 12. However, the recent price is a 1.08% increase in the last 24 hours, according to data from Coinstats. 

Arbitrum Whales Move $58M

Following the token unlock, data from the blockchain analysis firm Lookonchain, revealed that eleven Arbitrum whales deposited a total of 34 million ARB tokens, worth nearly $58 million at the current market price into various crypto exchanges. 

The move raised concerns among the community, with some speculating that these whales may be looking to profit from the unlocked tokens, pointing to a possible bearish market outlook.

While the price of ARB is yet to recover from the impact of the unlocked tokens combined with the recent whale movement, it appears like holders might not be getting relief anytime soon. According to Token Unlocks, the network is scheduled to release another 92.65 million tokens on April 16, valued at approximately $155 million at the current market price. Investors and analyst are closely paying attention to the potential impact it will have on Arbitrum’s tokenomics and market performance