Arbitrum (ARB), an Ethereum Layer 2 scaling solution, has seen its value surge over 111% in the past month, sparking widespread interest in its future. Concerns arise due to the potential impact of an impending ARB Airdrop, which could affect the token’s price stability.
In April 2023, Arbitrum gained attention with a massive $120 million Airdrop, reaching an all-time high (ATH) of $11.80 in May. However, subsequent Airdrop sales and profit-taking led to a price drop to $0.76, now priced 80% below its ATH.
Investors remain excited about ARB’s prospects, anticipating strong performance during the 2024/2025 bull market. However, Spot On Chain, an on-chain data provider, warns that four of the top ten ARB Airdrop recipients still hold 15.74 million ARB worth $35.89 million, posing a potential risk for a price drop if they decide to sell.
Currently, ARB is trading at $2.31, up 21.34% in the last 24 hours, with a 112.57% increase over the past month. The rise in trading volume by 78.06% to $2.7 billion suggests that the rally might be sustainable, and ARB now stands as the 33rd largest cryptocurrency with a market cap nearing $3 billion.
The market watches closely as the potential sell-off from Airdrop beneficiaries could lead to a sharp decline in ARB’s value, despite its recent positive performance and increased trading volume.