The recent release of a substantial amount of Arbitrum (ARB) tokens into the market has led to a 14% price drop, with the token’s value falling to $1.9. This decline commenced with the conclusion of ARB’s token supply release event, which introduced billions of tokens to the market, influencing the token’s trading dynamics.
Immediate Market Movements Post-Release
Analysis shows that a majority share of ARB’s total circulating supply, which amounts to over $2 billion, was allocated to the project’s team, future staff, and backers. Following the unlocking event, recipients promptly took action to capitalize on their holdings. Data from Spot On Chain reveals that several wallets transferred millions of ARB to Binance soon after the release. With a substantial quantity of ARB still in their possession, these wallets might instigate further market activity and possibly drive down prices.
Whale Behavior and Market Optimism
Santiment, a cryptocurrency analytics firm, has examined the trading patterns of ARB whales, discovering a significant volume of transactions above $1 million on the day of the token release. Contrary to the selling trend, many large-scale holders opted to acquire more ARB. At the same time, a noticeable increase in wallet addresses holding significant amounts of ARB suggests a wave of optimism about the token’s future. Market reactions in the coming times will reveal whether these holders maintain their confidence or choose to offload their assets.
On-Chain Activity Surges
The unlocking event has also spurred a surge in ARB’s on-chain activity, with a recorded increase in active and new addresses on the network. On March 16th, the number of unique addresses soared, signaling heightened interest and potential broader adoption of the token. Despite the dip in price, this uptick in user engagement points to a lively market reaction to ARB’s increased availability.