Arbitrum (ARB) Whales Join Panic-Selling and Incur Losses
Since its launch earlier this year, the price of Arbitrum (ARB) has experienced a significant decline. The altcoin entered a bear market, and as the bears exerted more control, the ARB token price plummeted even further. This downward trend has led to a surge in panic-selling, and it seems that even the whales have joined in.
Whales Sell ARB Despite Suffering Losses
As the price of ARB continues to decline, whales have been selling their holdings, taking significant losses in the process. On-chain tracker Lookonchain reported that large whales have sold millions of ARB tokens, despite losing millions of dollars themselves.
Wintermute Trading, for example, sent 4.35 million ARB tokens worth $3.36 million to Binance, while another whale transferred 3.8 million tokens worth $2.93 million to the same exchange. The tracker’s chart reveals that seven whales sold a total of 20.4 million ARB tokens on the open market within a 30-hour period. Considering the current all-time low prices, these investors are facing substantial losses.
Whales’ Losses and Arbitrum’s Potential
The collective cost of the 20.4 million ARB tokens sold by the whales amounted to $24.19 million. However, their recent sales only yielded $16.05 million, resulting in a loss of over $8 million and a 34% decrease in their initial investment.
Despite the rapid decline in ARB’s price, it is important to note that Arbitrum still has the highest total value locked (TVL) among all Layer 2 networks. Its TVL currently stands at $2.3 billion, surpassing Polygon and Optimism. Additionally, with over 100,000 daily active users, there is still significant faith in the network.
Potential for Reversal
Arbitrum’s short-term performance depends on the overall sentiment in the crypto market. If Bitcoin’s price starts to rise and sentiment improves, altcoins like ARB may experience a recovery. As of now, the ARB price sits at $0.7731, reflecting a 6.46% decrease in the last day and a 13.47% decrease in the last week.
Hot Take: Whales Selling ARB Despite Losses Raises Concerns for Crypto Investors
Despite the ongoing bear market and the decline in ARB’s price, the significant selling by whales is alarming for crypto investors. The fact that these large holders are willing to incur losses and abandon their positions raises questions about the future prospects of ARB. While Arbitrum maintains its position as the leading Layer 2 network in terms of total value locked and daily active users, the negative sentiment surrounding ARB’s price may hinder its recovery. Crypto traders should closely monitor the market sentiment, particularly Bitcoin’s performance, as it may signal a potential reversal and recovery for altcoins like ARB.
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