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A popular cryptocurrency analyst shared his insights on how the Arbitrum (ARB) airdrop will affect the token's price.
Miles Deutscher shared with his more than 300,000 followers on Twitter that he expects ARB to experience something similar to BLUR, APT, and OP.
What is Arbitrum?
Developed by Offchain Labs, Arbitrum is a Layer 2 scaling solution for Ethereum that utilizes rollup technology to enhance the scalability and user-friendliness of the Ethereum blockchain.
Its objective is to handle numerous transactions off-chain while retaining the same degree of security and decentralization as the primary Ethereum network.
Arbitrum airdrop and exchange listings
Arbitrum set its airdrop date for March 23. Initially, four big crypto exchanges announced their plan to list ARB – MEXC, Huobi, Bybit, and Bitrue. The exchanges will all list the token on the 23rd.
Additionally, the world’s largest cryptocurrency exchanges, Binance and Coinbase, also announced that they would support Arbitrum’s new native currency.
Nearly 13% of the token supply will be airdropped to users tomorrow, with the eligible recipients being selected through a special points system that considers various metrics.
READ MORE: Bitcoin: Is the Market Overbought or Just Getting Started?
Price expectations
Miles Deutscher shared a tweet in which he compares the history of popular airdrops (BLUR, APT, and OP) and how they affected the token’s price. According to the analyst, there are three stages of a similar pattern to observe:
- Pump upon launch
- Sell off as airdrop recipients sell
- Explosive recovery once selling is exhausted
He added that the ARB airdrop might not follow the same trend as previous airdrops, but observing the similarities between previous patterns is still interesting.
Arbitrum network
New data from DeFillama indicates that the decentralized exchange (DEX) transaction volume on Arbitrum has reached unprecedented levels. In the past two weeks, DEX transactions have risen by 32.41%, amounting to $4.34 billion, with a peak of $3.28 billion in the week commencing March 5.
L2beats reports that the total amount of assets locked on Arbitrum has increased by over 20% to reach $3.85 billion within the past week, accompanied by the locking of 2.15 million ETH tokens on the network.
The leading DeFi protocol on Arbitrum, GMX, is responsible for 28.27% of the total TVL on the network.