Home Altcoins News Investors Brace for ARB Token Volatility Ahead of Major Unlocking Event

Investors Brace for ARB Token Volatility Ahead of Major Unlocking Event

ARB token

In the realm of cryptocurrency, anticipation is mounting as the countdown begins for the unlocking of 1.11 billion ARB tokens, valued at a staggering $2.26 billion. This event, set to unfold on March 16, has set the stage for potential market volatility, with investors and traders closely monitoring developments.

The impending release of ARB tokens, comprising 76.62% of the circulating supply, has prompted a flurry of activity within the crypto community. Among the tokens set to be unlocked, 673.50 million ARB tokens are allocated for the team, future team, and advisors, with an additional 438.25 million earmarked for investors.

Delving into the tokenomics of ARB tokens unveils a comprehensive distribution plan encompassing various stakeholders, including the treasury, team, advisors, investors, users, foundation, and DAOs. However, recent insights gleaned from on-chain reports indicate a proactive stance among institutions and individual traders ahead of the unlocking event.

Institutions such as dForcenet and Synapse Protocol, recipients of ARB tokens in the DAO airdrop, have reportedly initiated sell-offs of their holdings. Notably, dForcenet liquidated 2.45 million ARB tokens on Binance, while Synapse Protocol opted to swap 1.03 million ARB tokens for USDC.

The anticipation surrounding this event is palpable, with traders and investors bracing themselves for potential price turbulence. This unlocking event includes allocations for various stakeholders, ranging from the team and advisors to investors and DAOs. However, recent reports suggest that some institutions and individual traders are already taking preemptive measures in light of the impending unlock.

Institutions such as dForcenet and Synapse Protocol, both recipients of ARB tokens in the DAO airdrop, have reportedly wasted no time in offloading their holdings. dForcenet swiftly deposited 2.45 million ARB tokens onto Binance, while Synapse Protocol opted to swap 1.03 million ARB tokens for USDC, showcasing a proactive approach to mitigate potential risks.

Meanwhile, individual wallet holders have also been observed engaging in significant transactions, with some opting to divest their entire ARB holdings. This flurry of activity underscores the cautious sentiment pervading the market as the unlock event draws nearer.

Despite the sell-off frenzy, there have been intriguing instances of whale activity that hint at underlying bullish sentiment. Notable wallet addresses have made sizable purchases in recent days, with one address withdrawing a hefty 2.3 million ARB tokens from Binance, signaling confidence in the token’s future trajectory. Another wallet address splurged 505 ETH to acquire 901,685 ARB tokens, further bolstering optimism amidst the market turbulence.

Unsurprisingly, the heightened activity surrounding ARB tokens has translated into price fluctuations, with a 3% decline recorded today and a 6% downturn over the past week. However, it’s worth noting that despite the recent sell-offs, the top 20 holders still wield considerable influence, collectively holding 59.51% of the total token supply.

Simultaneously, individual wallet holders have been observed executing substantial transactions, with some opting to divest their entire ARB holdings. This flurry of activity underscores the cautious approach adopted by market participants in light of the impending unlock.

Despite the prevailing sell-off pressure, discernible bullish sentiment persists, evidenced by notable whale transactions in recent days. Wallet address 0x4009 made a notable withdrawal of 2.3 million ARB tokens from Binance, signaling confidence in the token’s long-term prospects. Similarly, wallet address 0x1219 demonstrated bullish conviction by expending 505 ETH to acquire 901,685 ARB tokens merely three days ago.

While ARB tokens have experienced a marginal decline of 3% today and a 6% downturn over the past week, the top 20 holders collectively retain a substantial portion of ARB tokens, accounting for 59.51% of the total supply. This consolidation of holdings among major players underscores the enduring interest in ARB tokens despite short-term fluctuations.

In essence, the impending unlocking event for ARB tokens has catalyzed heightened market activity, characterized by a juxtaposition of selling pressure and buying interest among investors and traders alike.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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