Whales Show Confidence in ARB Despite Unlocking Event
On March 16, Arbitrum unlocked 1.1 billion ARB tokens, causing concerns of a potential sell-off. However, data from Lookonchain suggests that large-scale investors, known as “whales,” are holding onto their ARB tokens. Only 58 million tokens were sent to exchanges by 11 whales, indicating continued confidence in the project’s future.
Understanding the Cliff Unlock
A “Cliff Unlock” refers to the simultaneous release of all allocated tokens for an event. In this case, Arbitrum sent 1.1 billion ARB tokens to investors, team members, and advisors. The advisors and team received 673.5 million tokens, while investors received the remaining 438.25 million tokens.
Impact on ARB Prices
Following the unlocking event, ARB prices have decreased by 24% from their March 2024 highs. However, despite the selling pressure, the overall uptrend remains intact and buyers continue to dominate the market.
Bullish Sentiment in the Crypto Community
While ARB may be under pressure, the broader Ethereum and crypto community remains bullish. The recent release of the “Dencun” update on the Ethereum mainnet has reduced transaction fees, making layer-2 solutions like Arbitrum more attractive to users. This upgrade is particularly beneficial for developers and users who want to take advantage of Ethereum’s on-chain activity without dealing with high gas fees and scalability issues. As layer-2 solutions gain adoption, Arbitrum stands to benefit.
Hot Take: Whales Holding On to ARB Tokens Despite Unlocking Event 🐋
The recent unlocking of ARB tokens raised concerns about a potential sell-off, but data from Lookonchain suggests that large-scale investors are holding onto their tokens. This indicates confidence in the project’s future and suggests that the selling pressure may not be as significant as initially feared.
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