Arbitrum: What’s In Store For ARB Token After Unlock?

Christian Encila

1 year ago

3 mins read

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Arbitrum (ARB) is gearing up for a monumental token unlock scheduled for March 2024, poised to inject a staggering 1.11 billion ARB tokens, worth approximately $907 million at current market prices, into the cryptocurrency market.

Token unlocks refer to the release of previously restricted or vested tokens into circulation. These events often have significant consequences on the price and sentiment surrounding a cryptocurrency.

They can introduce inflationary pressure into the market and act as bearish catalysts, causing traders to closely monitor their schedules.

🌟 Is anyone curious about the pre/post-unlock analysis of @arbitrum ? 🌟

There was only one cliff unlock of $ARB
Here are the price impact results after the unlocks💡;

– On the first day after unlocks, the price rose by 3%✨
– Then, it gradually dropped to -21% (around 21… pic.twitter.com/GQtxGCgoQF

— Token Unlocks (@Token_Unlocks) September 18, 2023

ARB Token Poised For Massive Potential Price Growth

Token analytics firm Token Unlocks recently conducted a comprehensive analysis of ARB’s price impact following previous unlocks. Their findings shed light on the market’s response to these events.

According to their data, ARB experienced a 3% price appreciation on the first day of the unlocks. However, this initial uptick was followed by a prolonged three-week downtrend, during which the price dipped by more than 20%. Surprisingly, 25 days after the unlock, prices began a remarkable recovery, ultimately rising by nearly 19% from the unlock day.

🌟 Is anyone curious about the pre/post-unlock analysis of @arbitrum ? 🌟

There was only one cliff unlock of $ARB
Here are the price impact results after the unlocks💡;

– On the first day after unlocks, the price rose by 3%✨
– Then, it gradually dropped to -21% (around 21… pic.twitter.com/GQtxGCgoQF

— Token Unlocks (@Token_Unlocks) September 18, 2023

Implications For The Market

The upcoming 2024 unlock poses both opportunities and challenges for the crypto market. The sheer magnitude of this release can be expected to exert downward pressure on ARB’s price in the short term, given the historical data. Traders and investors should brace themselves for potential price volatility.

Arbitrum (ARB) is currently trading at $0.8485. Chart: TradingView.com

Meanwhile, Layer-2 solutions have emerged as the dominant force in the cryptocurrency sector, witnessing extraordinary growth from $5 billion to $10 billion in just nine months. Arbitrum, along with Base, reportedly deserves much of the credit for this remarkable expansion.

In a race for supremacy, Arbitrum overtook Optimism to become the world’s largest Layer-2 blockchain, with an impressive $5.3 billion in assets locked on its platform. Currently, Arbitrum controls over half of the funds locked in the Layer-2 market, while Optimism claims another 25.4% of the market share.

Key Moment For Crypto

The forthcoming ARB token unlock next year promises to be a pivotal moment for the cryptocurrency market. While it may initially introduce uncertainty and bearish sentiments, historical data suggests that ARB has the potential to rebound strongly in the weeks following the unlock.

Furthermore, the rise of Layer-2 solutions, spearheaded by Arbitrum, highlights the ongoing evolution and growth within the crypto space. Traders and enthusiasts alike will be closely watching as this event unfolds and the market responds to this significant injection of ARB tokens.

With a current ARB price of $0.8485, as reported by CoinGecko, the cryptocurrency has seen a 2.9% increase in the last 24 hours and a notable seven-day rally of 9.0%.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Nansen

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.