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- Over $2 billion worth of ARB tokens set to unlock on March 16, 2024, impacting 87% of circulating supply.
- Token Unlocks report suggests tokens typically rise 34% post-unlock, amid market volatility concerns.
The crypto ecosystem is bracing for a significant event this month as Ethereum’s layer 2 scaling protocol, Arbitrum, gears up for a monumental token release. On March 16, 2024, over $2 billion worth of ARB tokens are set to be unlocked, marking a pivotal moment for the protocol and its stakeholders.
According to Token Unlocks, this event will see over 1.1 billion ARB tokens, constituting around 87% of the circulating supply, distributed predominantly to the project’s team, advisors, and investors.
Arbitrum’s Billion-Dollar Unlock
This unlock is not just significant in terms of volume but also in its potential market impact, making it the most noteworthy token unlock event this month.
Just recently, dYdX unveiled around $111 million worth of tokens, with Aptos set to release $234 million in tokens on March 13, and Immutable planning an unlock of approximately $105 million in tokens on March 22.
In a move that underscores the growing adoption and integration of layer 2 solutions, Robinhood recently incorporated Arbitrum into its Web3 wallet. This strategic partnership is aimed at providing users with faster, more efficient transactions by leveraging Arbitrum’s advanced layer 2 technology, highlighting the protocol’s increasing influence in the broader crypto ecosystem.
Despite the excitement surrounding these developments, the ARB token is currently trading at around $1.9, experiencing a nearly 3% drop over the last 24 hours. With a market cap hovering around $2.5 billion, the upcoming unlock raises questions about the potential market dynamics and whether there might be a price dump following the release.
Token unlocks are a common practice in the crypto world, designed to prevent market destabilization by gradually releasing tokens to early investors and insiders.
However, such events often lead to speculation about the potential for these stakeholders to sell off their tokens en masse, potentially flooding the market and driving prices down. Arbitrum investors are naturally attuned to these concerns as the unlock date approaches.
Yet, the broader impact of token unlocks on market prices remains a subject of debate and speculation. Token Unlocks’ annual report suggests an optimistic outlook, indicating that tokens, on average, rise 34% after being unlocked for private investors.
This statistic, however, does not diminish the inherent uncertainties and variable factors that could influence the actual market outcome following the unlock.
Beyond ARB: Other Tokens on the Horizon
In addition to ARB, Token Unlocks has also highlighted other tokens slated for release between March 11 and 17, including APT, APE, CYBER, among others.
🔓 Weekly Cliff Unlocks : 11-17 MAR 24 🔓
🔥 $ 2.79 BILLION 🔥
🌟 Highlights: $APT, $ARB, $APE 🌟$ARB (76%) – $2.41b 🌟🌟$APT (7%) – $330m 🌟$APE (3%) – $34.63m 🌟$CYBER (6%) – $10.06m$FLOW (0.2%) – $3.49m$GLMR (0.4%) – $1.55m$EUL (0.5) – $0.63m
( % of cir. supply) pic.twitter.com/fVfCv8FDyA
— Token Unlocks (@Token_Unlocks) March 8, 2024
This period is set to be a critical juncture for the crypto market, as investors and enthusiasts closely monitor the effects of these unlocks on market dynamics and token valuations.
Previously, in a related development, the AVAX Token Unlock ihas release 9.5 million tokens into the market, with analysts forecasting a surge in Avalanche’s price to $45 at that time, as formerly reported by Crypto News Flash.
Price Dump Incoming?
In light of the massive Arbitrum token unlock on the horizon, the crypto community is abuzz with speculation about a potential price dump. The release of such a substantial portion of the circulating supply to team members, advisors, and investors has historically led to increased market volatility.
While some analysts remain optimistic, drawing parallels to previous unlock events that resulted in price surges, the unique circumstances surrounding Arbitrum’s unlock keep market watchers on edge, pondering the immediate future of ARB’s valuation.
At the time of writing, the price of ARB has risen 4.55% in the last 24 hours, reaching a price of $2.17. This represents an increase of 10.27% over the past 7 days.