Arbitrum Shows Signs of Recovery Amid Whale Movement

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7 Apr 2024

Arbitrum Shows Signs of Recovery Amid Whale Movement

After the unlocking event of approximately 8.95 million ARB tokens worth $16.4 million, the price of ARB sharply declined to $1.62.
Following the token unlock event on Arbitrum, approximately 8.95 million ARB tokens worth 16.4 million USD were transferred to the Binance exchange. This has led to a sharp decline in ARB’s price, falling to $1.62 yesterday according to the report. Despite this decrease, Arbitrum continues to dominate the Ethereum layer 2 space with significant transaction volume.
The ARB transfer took place amid a token sale and unlock event. In contrast, just a few hours ago on March 18, a whale account with address 0x985 allegedly withdrew 1.31 million ARB (equivalent to 2.23 million USD) from Binance.

ARB whale trading

After much anticipation, more than 1 billion ARB tokens were released on the layer 2 network on March 16. The crypto community has conducted many discussions about the potential impact of this event.
In the days following the token unlock, SpotOnChain, a blockchain analytics company, discovered six wallets that received tokens from vesting contracts on the network, then transferred them to cryptocurrency exchanges.
Data from SpotOnChain recorded that these addresses transferred 8.95 million ARB tokens, or about $16.4 million, to the Binance exchange on March 17. It is worth noting that the number The amount of ARB tokens still remaining in these wallets is 32.95 million. Transfers to exchanges are often seen as a sign of wanting to sell down.
Defillama
However, a shark with address 0x985 withdrew 1.31 million ARB (equivalent to 2.23 million USD) from the Binance exchange at a price of 1,702 USD a few hours ago, according to information from SpotOnChain. After a drop in the market and a series of large transactions, the shark withdrew 2.81 million ARB through 2 transactions from Binance, at an average price of 1,702 USD (equivalent to 4.79 million USD). in the last 18 hours.
With this price drop and the overall cryptocurrency market downturn, ARB’s price fell to $1.62 yesterday, its lowest price since January. However, there has been a slight recovery with ARB prices rising to $1.70 at the time of writing. Even so, the recent price decline has reflected significant loss, down around 16% in value over the past week.
Related: Will Arbitrum Price Decrease After Major Token Unlock?
However, the community still has hope in Arbitrum’s potential. Market observers still see this as an opportunity for investors to add to their portfolios. According to data from DeFiLlama, Arbitrum is currently the largest scale Ethereum layer 2 solution, with a total value locked of $4.087 billion and a significant amount of decentralized transactions, helping this protocol dominate the market.
Furthermore, according to IntoTheBlock, a blockchain analytics company, Arbitrum accounts for more than 55% of all Ethereum-based layer 2 network transactions. IntoTheBlock also revealed: “Daily, more than 1.8 million transactions take place between leading Ethereum layer 2 platforms, with Arbitrum accounting for more than 1 million of that total.” With the recent integration with the Dencun Upgrade, transaction fees have been significantly reduced, enhancing its competitiveness in the market.