A new wave of whales who possess Arbitrum have decided to transfer their coins into exchanges after a significant number of vested tokens were released earlier this month. Lookonchain, a blockchain data platform, observed four additional wallets moving ARB tokens into exchanges following the $2.32 billion vested token unlock on March 16. In total, the whales transferred 11.34 million ARB tokens to Binance through four separate transactions, amounting to a value of $18.5 million at the time of the transfer.
The crypto community has expressed mixed opinions regarding these recent fund movements in Arbitrum. While one user believes that this is not a bearish sign, another user thinks that ARB will not experience an increase in value at this point.
This recent event follows a previous batch of transfers last week when 11 whales deposited ARB into exchanges. On March 18, Lookonchain reported that these whales transferred $58 million worth of ARB tokens to exchanges. These transfers occurred after the layer-2 blockchain project Arbitrum released $2.3 billion worth of tokens following the vesting period. The project allocated 673.5 million ARB tokens for its advisers and team members, while 438.25 million ARB tokens were reserved for the investors. The tokens were released in a cliff unlock, meaning they were all released at once. This sparked predictions of a massive sell-off, while others hoped this wouldn’t be the case.
Since the token unlock, the price of ARB has experienced a downward trend. On March 13, the ARB token reached a high of $2.22, but by March 16, when the tokens were unlocked, the price dropped to $1.84. In the past week, the token’s price dropped as low as $1.48 on March 19 but reached a high of $1.79 on March 21. At the time of writing, the token is currently valued at around $1.70. According to CoinGecko, a coin data tracker, ARB’s current price is nearly 29% lower compared to its all-time high of $2.39 on January 12.
Although the token vesting unlock has already impacted the price, it is possible that this downward trend will continue. According to the crypto vesting tracker Token Unlocks, Arbitrum is scheduled to release an additional 92.65 million ARB tokens for its advisers, team, and investors on April 16.