Token Unlocks data shows that on March 16, 2024, the layer 2 scaling protocol Arbitrum on Ethereum will release more than $2 billion worth of ARB tokens.
In the next Arbitrum unlock, the project’s advisors, investors, and team members will get more than 1.1 billion ARB tokens, which is almost 87% of the total supply. So far, the project has distributed over 1.5 billion tokens, which is almost 16% of the entire supply.
Tokens have never been unlocked to this extent this month. In addition to Arbitrum, other projects with important releases include dYdX, Aptos, and Immutable. Today, DYdX distributed tokens valued at around $111 million. March 13 will see the release of around $234 million worth of Aptos tokens, while March 22 will see the unlocking of approximately $105 million worth of immutable tokens.
Robinhood now offers quicker and more cost-effective transactions to its consumers by integrating Arbitrum, which leverages its Layer 2 technology.
According to CoinGecko’s statistics, ARB is now trading at about $1.9, reflecting a decrease of over 3% over the last 24 hours. The token is worth around $2.5 billion on the market.
Projects in the cryptocurrency space typically hold back some of their token supply and release it in stages to discourage market instability caused by early investors and insiders selling off huge amounts all at once.
Many investors worry that insiders and early adopters may sell their unlocked tokens after a rapid and large-scale release following a lockup period, causing the price to fall dramatically. Everyone’s an investor in Arbitrum.
On the other hand, there are a lot of variables that make it hard to predict how a token unlock will affect the price. Token Unlocks found that when private investors buy tokens, the value of such tokens often increases by 34%.
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