Will Increased Circulating Supply Impact ARB’s Value by 2024?

Arbitrum ($ARB), a scaling solution on Ethereum, is expected to inject more native tokens into circulation by March 2024. According to projections, the anticipated token release would double the current $ARB circulating supply in Arbitrum’s network.

$ARB, Arbitrum’s native token has experienced some volatility during this period, responding to market trends and the overall crypto market behavior. However, some developments are peculiar to Arbitrum, as $ARB investors focus on the token’s price behavior in the recent past. They are also observing the proposed activities that could impact $ARB’s price in the future.

One anticipated development that could impact $ARB’s value is the impending increase in the digital token’s circulating supply. There are projections that $ARB’s circulating supply will more than double next year. Precisely, it is expected to increase by 116.3%, according to data from Token Unlocks, a crypto tokens analytics platform.

Token Unlocks highlighted some of $ARB’s growth indicators, including the significant increase in users holding the digital token. According to the analytics platform, $ARB token holders have reached 611,000 since it launched in March 2023. Per the anticipated increase in circulating supply, Token Unlocks noted the expectation of a significant $ARB unlocking exercise on March 16, 2024. The unlocking will introduce 1.11 billion new $ARB tokens into circulation.

Considering the expectation, Token Unlocks anticipates the number of $ARB holders to reach 2.07 million by 2024. That would reflect a 330% increase in the digital token’s adoption rate and could generate significant bullish sentiment for the layer-two protocol.

This bullish sentiment appears to be playing out as users observe significant bullish $ARB-related transactions in the crypto marketplace. Lookonchain, the smartmoney on-chain tracker, recently identified a whale involved in multiple $ARB withdrawals from the Binance exchange. Lookonchain’s post highlighted that the whale has withdrawn 11 million $ARB tokens worth over $13 million.