Arbitrum (ARB) tokens have been deposited into crypto exchanges by whales following the unlocking of a substantial portion of vested tokens on March 16.at least 11 whales deposited a combined total of 34 million ARB tokens, worth almost $58 million at the time of writing, into exchanges on March 18.
This move came after Arbitrum, a layer-2 blockchain project, conducted a massive token unlock on March 16, releasing 1.1 billion ARB tokens worth $2.32 billion. According to crypto vesting tracker Token Unlocks, 673.5 million of these tokens were unlocked through a “Cliff Unlock,” meaning they were released all at once.
The sudden influx of unlocked tokens sparked concerns among investors, with some predicting that many holders would take short positions against the token.
The impact of the token unlock was immediately reflected in the ARB token price. ARB recorded a high of $2.22 on March 13 but dropped to $1.84 on the day of the unlock, March 16. The following day, March 17, the token plunged further to $1.66 on Monday Morning, marking a seven-day low.
Currently, the ARB token is hovering around the $1.70 price point, nearly 29% below its all-time high of $2.39 reached in January. Meanwhile, the unlocked tokens have already driven the price down by 23.42%.
As the Arbitrum project navigates this critical phase, investors and analysts alike closely monitor the market’s reaction to the token unlock and the potential implications for the layer-2 blockchain’s future.
