Arbitrum Will Unlock $2.32 Billion in Vested ARB Tokens on March 16th
Last updated: | 2 minutes reading time
Arbitrum, a Layer 2 blockchain network, is preparing to release $2.32 billion in vested Arbitrum (ARB) tokens on March 16, marking a major milestone for the platform .
Token Unlocks highlighted that Arbitrum will be conducting a “Cliff Unlock,” where tokens will be released in a lump sum on the deadline.
Arbitrum prepares to unlock $2.32 billion worth of tokens on March 16
According to data from Token Unlocksapproximately 1.1 billion locked ARB tokens will be unlocked, which represents approximately 76% of the circulating token supply.
Of the unlocked tokens, Arbitrum will allocate 673.5 million tokens to its team and advisors, worth approximately $1.41 billion at current prices.
Additionally, 438.25 million tokens worth approximately $915 million will be released to investors. Token Unlocks clarified that this is a “Cliff Unlock,” meaning that no tokens will initially be released until the specified unlock date, after which a lump sum will be released into the market.
Unlocks are staggered releases of cryptocurrencies that have been frozen to prevent early investors or project team members from selling in large quantities. The Cliff Unlock method allows a certain number of tokens to be released immediately after a predetermined period of time, after which the release occurs on a linear schedule.
After the March 16 release, Arbitrum will continue to release a set amount of tokens every four weeks for four years, Token Unlocksnoted in a tweet.
📅 Mark your calendars
$1.1 billion in ARB unlocks pending ⏳Get ready for a massive unlock on March 16, 2024 when the team and the Investors will unlock their tokens with a total value of an incredible $1.26 billion. 🔥
But that’s not all! Starting from this day, every 16th… pic.twitter.com/Ayv4bKXmty
— Token Unlocks (@Token_Unlocks) August 16, 2023
Given the large number of tokens to be unlocked, members of the crypto Community excited about possible price fluctuations for ARB tokens. Some expectan increase in short positions against the token on March 16th, while othershave already soldtheir tokens in anticipation of the unlock.
Unlocks liquidity and is considered a bearish catalyst for the price of the cryptocurrency. A study by crypto analytics firm The Tie shows that unlocks that account for more than 100% of average daily trading volume tend to have a negative impact on the token’s price.
However, crypto influencer JJcyclesshared an opposing viewpoint on social media platform X and drew parallels to a previous token unlocked by Solana.
On March 16th
the Arbitrum supply increases dramatically.Unlocks:
1.674M ARB – Team
2.438M ARB – InvestorsThe last time I saw such a large supply unlock during a bull market for comparatively large coins was with Solana last year year cycle.
It ended… pic.twitter.com/HSJG7WXbzu
— JJcycles (@JJcycles) March 3, 2024
The trader noted that Solana’s SOL token experienced a price surge following the release of the vested tokens , on the contrary, to the expectation of a price decline.
Arbitrum’s ARB token lags behind competition amid market growth -Assets observed day.
Despite an overall positive trend in the sector, ARB proved to be the weakest performer among the top five L2 tokens, registering a decline of over 2% during the period under review, while the sector recorded an average increase of 3.8%.
SpotOnchain’s analysis shows significant sell-offs by whales, with approximately 3 million ARB tokens being offloaded for $6 million just before the event.
Despite this, Arbitrum maintains its position as the largest Ethereum-based Layer 2 network, with DeFillama data indicating a total value of locked assets of $3.6 billion.
At press time, ARB was changing hands at $2.10, down 3.04% in the last 24 hours.
In addition to Arbitrum, several other projects are preparing to unlock tokens this week. Aptos is expected to release about 24 million tokens worth about $329 million on March 13, representing a significant portion of the project’s circulating supply.
Likewise, projects such as ApeCoin, Flow, CyberConnect, Moonbeam and Euler are in the process of releasing vested tokens, which together amount to approximately $53 million in digital assets.
With approximately $2.7 billion worth of tokens set to be unlocked in various projects this week, the cryptocurrency space is anticipating big developments and possible market changes in the coming days.
