Crypto Whales Cash in on Arbitrum's ($ARB) Meteoric Rise Amid Ethereum Scaling Success

cryptoglobe.com 19 April 2023 02:05, UTC

Altcoins

Two large cryptocurrency investors have recently divested substantial holdings on the native token of Ethereum scaling solution Arbitrum, $ARB, after the price of the cryptocurrency was airdropped to investors and saw its value surge over 250%.

According to data from blockchain analytics platform Lookonchain, one of the whales selling tokens was the largest buyer of $ARB on its first day of listing, and has now transferred all of its 9.94 million $ARB tokens, worth around $17 million, to cryptocurrency exchange Binance.

The largest buyer of $ARB on the first day of listing transferred all 9.94M $ARB($17M) to #Binance 30 mins ago.https://t.co/KqaiO7an6Ahttps://t.co/X8LOnrzeRJ pic.twitter.com/MaiwlIBReC
— Lookonchain (@lookonchain) April 15, 2023

In a separate transaction, another investor in the 33rd-ranked digital asset transferred their entire $ARB holdings, valued at $18 million, to Binance. As Lookonchain highlights, the investor had purchased the 11 million $ARB for $13.55 million, with an average buying price of $1.24. By selling at the rate of $1.64, which was $ARB’s price at the time of the transaction, they stand to make a profit of $4.54 million, translating to a return on investment (ROI) of 33%.

$ARB has since kept on rising to now trade at $1.76 per token, which would mean the whale could be making as much as $8 million on the trade if they kept the funds on their Binance wallets for a few more hours.

ARBUSDT Chart via TradingView

According to data from decentralized finance tracker DeFi Llama, Arbitrum ranks fourth among all blockchain networks in terms of total value locked (TVL), with a total of $2.31 billion worth of digital assets locked on its smart contracts.

Ethereum ($ETH), Tron ($TRX), and $BNB Chain currently lead the rankings with $31.8 billion $5.5 billion, and $5.1 billion respectively. The TVL of a blockchain is an important metric that indicates the overall capital contained within its smart contracts.

As CryptoGlobe reported, leading US-based cryptocurrency exchange Coinbase helped $ARB’s token gain traction after listing it last month. Arbitrum, an Ethereum Layer 2 scaling solution developed by Offchain Labs, is an optimistic rollup offering trustless security, compatibility with Ethereum, scalability, and minimal costs.