Arbitrum whales steadily accumulate ARB tokens amid price correction

Arbitrum ($ARB) has entered a sharp correction following a recent token unlock, which released 1.1 billion $ARB tokens worth over $2 billion. According to data from CoinGecko, $ARB is trading at around $1.6, down 20% in the last seven days and 30% lower than its record high of nearly $2.4 in January. Despite the price correction, on-chain insights suggest Arbitrum whales $ARB purchases." data-testid="issue-underline:undefined">press on with $ARB purchases.

According to data from Santiment, transactions worth over $1 million surged on March 16, the day of the $ARB token unlock. While this might suggest selling pressure, wallets holding between 100,000 and 100 million $ARB tokens were on the rise on the same day. This indicates that major whales are likely accumulating $ARB despite market concerns.

Notably, these whales began stockpiling tokens in the days leading up to the unlock, a period coinciding with a downward trend in Arbitrum’s prices.

The recent Arbitrum token unlock, distributing a significant portion of the circulating supply, triggered a surge in on-chain activity. Over 330,000 unique addresses interacted with the network that day, a 13,000 increase from the previous day. Furthermore, the number of new addresses joining the network jumped 77%.

On-chain analysis from Spot On Chain revealed that six wallets linked to $ARB vesting contracts recently transferred approximately 8.9 million $ARB tokens, worth around $16 million, to Binance. These wallets reportedly possess nearly 33 million $ARB tokens, though their profit-taking activities remain uncertain.

The $ARB price dropped 11% (12H) amid a market downtime and a major unlock!

In the past 12 hours, 6 wallets, which just received tokens from vesting contracts, have deposited 8.95M $ARB ($16.4M) to #Binance.

They still hold 32.95M $ARB ($56.7M) and may deposit out more tokens!… pic.twitter.com/165fOuMpvh

— Spot On Chain (@spotonchain) March 17, 2024

Data from Token Unlocks shows that Arbitrum is set to release another 92.65 million tokens, valued at around $160 million at current prices, on April 16. This distribution to the team, advisors, and investors could cause additional price volatility in the coming weeks.