- An algorithmic trading company purchased 17.08 million ARB tokens.
- Sentiment around the market suggests that unlocks may not cause a price crash.
Market maker Wintermute Trading added $36.3 million worth of Arbitrum (ARB) tokens. This happened ahead of the token unlock scheduled for March 16th.
AMBCrypto observed through data from Spot On Chain that this is not the first token purchased on the market. At the time of press, the latest purchases mean Wintermute Trading now holds a total of 29.48 Million ARBs.
Source: X
Freedom may not be a bad thing for ARB
Unlocking a token means releasing a previously locked token into circulation. This mechanism is meant to increase supply. Therefore, if demand does not match circulating supply, the price of that cryptocurrency may fall.
Arbitrum’s token unlock is one of the biggest of the year. On the scheduled date, the Ethereum (ETH) layer 2 project plans to release 1.45 billion tokens. This represents 15.7% of total supply and is worth $2.93 billion.
Market maker sentiment suggests that Arbitrum’s token unlocking may not result in a price collapse. If so, any potential downturn may not last long as there is confidence that a bounce will occur.
At the time of this writing, the price of ARB was $2.01. This value has decreased by 6.50% over the last 24 hours. Despite the recent decline, sentiment surrounding the project has changed. Previously, ARB’s Weighted Sentiment was Negative.
However, by March 13, the numbers had risen into negative territory. Weighted Sentiment tracks positive and negative comments about the Arbitrum project. So, if you look at the numbers measured at press time, you can see that the discussion around ARB was optimistic.
Therefore, it is possible for traders to bet large amounts on long positions. In addition to broad market sentiment, AMBCrypto also noticed significant changes in the number of ARB holders.
Source: Santiment
Will it be posted only after the event ends?
Three months ago, the number of holders was 985,000. However, at the time of writing, that number has risen to 1.17 million. A surge like this means buyers are confident in the long-term potential of the token.
On the social end of the market, on-chain data shows Arbitrum’s dominance increasing. Compared to other assets in the market, high social dominance means increased discussion about the project.
An exponential increase in social dominance can make you the best in a region, but Arbitrum’s case was different because it wasn’t that high. Therefore, the token may have good upside potential after unlocking the token.
Source: Santiment
How much is 1,10,100 ARB worth today?
Meanwhile, active addresses on the network have declined. Active addresses of 24,900 indicate that speculation about ARB has decreased. As speculation decreases, the likelihood of selling also decreases.
However, this does not mean that the price of ARB may not fall below $2 to unlock it. Be that as it may, indicators agree that a rally could take place after supply increases.