Ethereum Layer 2 Scaling Solution Arbitrum to Release Over $1 Billion Worth of ARB Tokens in March
Arbitrum, an Ethereum layer 2 scaling solution, is set to release 1.11 billion ARB tokens in March next year, with a value of $1.24 billion. This marks the beginning of a four-year period where the tokens will be gradually unfrozen. As of now, over 5 billion ARB tokens are still locked.
Key Points:
– On March 16, 1.11 billion ARB tokens will be “cliff unlocked” and made available for circulation.
– The released tokens represent 87% of the total circulating supply of 1.275 billion.
– Unlocks of cryptocurrencies are staggered releases to prevent large-scale selling by early investors or project team members.
– After the initial release, Arbitrum will continue to unfreeze a certain amount of tokens every four weeks for the next four years.
– Unlocks of tokens are considered bearish catalysts for the cryptocurrency’s price.
The release of a substantial number of tokens can have a significant impact on the cryptocurrency’s price. In this case, the unlock represents more than 100% of the average daily trading volume of ARB tokens. As a result, the price of ARB may be negatively affected.
As of now, the value of ARB tokens stands at $1.12, experiencing a 4% decrease for the month.
Hot Take:
Arbitrum’s upcoming release of over $1 billion worth of ARB tokens will provide liquidity to the market, but it may also put downward pressure on the price. It will be interesting to see how this massive influx of tokens affects the overall dynamics of the cryptocurrency and how investors and traders respond to this development.
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