Arbitrum is set to have another massive token unlock next month.
Arbitrum (ARB) whales have made a massive move, transferring $58 million worth of ARB tokens shortly after a significant unlock event on March 16. The transaction has caused widespread panic among investors and traders, highlighting the volatility of the digital asset space.
Arbitrum Token Unlock
On March 18, blockchain analysis firm Lookonchain reported at least 11 whales who had deposited their tokens to several crypto exchanges after the unlock. At the time of writing, the whales have collectively deposited 34 million ARB worth approximately $58 million.
During the massive token unlock event, Arbitrum unlocked a staggering 1.1 billion ARB tokens, with a total value estimated at $2.23 billion.
According to data from crypto vesting tracker Token Unlocks, the project unlocked 573.5 million tokens for its team members and advisers and released an additional 438.25 tokens for investors.
The Ethereum layer-2 network used a “Cliff Unlock” mechanism, meaning the tokens were released simultaneously. This prompted speculation that many holders might initiate short positions against the token.
Several community members took to social media platforms to announce their decision to sell their ARB holdings.
Some individuals maintained optimism that the token would not experience a sharp decline. A community member hoped ARB would exhibit a similar pattern in the previous vesting unlock periods, where token prices surged instead of declining.
Arbitrum Price Fluctuation
ARB token price experienced a downward trend. The token reached a high of $2.22 early this month and dropped to $1.84 on March 16, coinciding with the day of the unlock.
On March 17, ARB witnessed a further decline in value, with the asset dropping to $1.64, marking a seven-day low.
At the time of writing, the token is fluctuating around the $1.67 mark, representing a 29% decrease from its all-time high of $2.39, which it attained on January 12.
Meanwhile,according to Token Unlocks, Arbitrum is set to release another 92.65 million tokens on April 16.