Arbitrum Set to Release $2.32 Billion in Locked ARB Tokens on March 16

Arbitrum, a Layer-2 blockchain network, is preparing to unlock $2.32 billion in vested Arbitrum (ARB) tokens on March 16, representing a significant milestone for the platform.

Token Unlocks indicated that Arbitrum will implement a “Cliff Unlock,” where tokens are distributed in a single batch at the specified date.

Arbitrum Set for $2.32 Billion Token Unlock on March 16

As per information from Token Unlocks, around 1.1 billion locked ARB tokens will be released, accounting for approximately 76% of the token’s circulating supply.

From the unlocked tokens, Arbitrum will designate 673.5 million tokens, valued at about $1.41 billion at current market rates, to its team and advisors.

Moreover, 438.25 million tokens, estimated to be worth around $915 million, will be made available for investors. Token Unlocks clarified that this will be a “Cliff Unlock,” meaning no tokens will be released until the unlock date, at which point a lump sum will enter the market.

Unlocks are staggered distributions of cryptocurrencies that have been held back to prevent early investors or project team members from selling large quantities. The Cliff Unlock approach permits the immediate release of a specific number of tokens after a set period, followed by a linear release schedule.

After the March 16 release, Arbitrum will continue to unlock a certain number of tokens every four weeks for a duration of four years, as noted by Token Unlocks in a tweet.

Mark your calendars
$1.1 billion in $ARB unlocks are coming

On March 16th, 2024, prepare for a significant cliff unlock as the Team and Investors release their tokens, totaling an impressive $1.26 billion.

But that’s not all! Starting from that day, every 16th of the… pic.twitter.com/Ayv4bKXmty

— Token Unlocks (@Token_Unlocks) August 16, 2023

Given the substantial number of tokens scheduled for release, members of the crypto community are bracing for possible price volatility for ARB tokens. Some anticipate an increase in short positions against the token on March 16, while others have preemptively sold their tokens in light of the upcoming unlock.

Unlocks enhance liquidity and are often viewed as bearish influences on the cryptocurrency’s price. A report from crypto analytics firm The Tie indicates that unlocks representing over 100% of the average daily trading volume typically exert a negative effect on the token’s price.

Conversely, crypto influencer JJcycles expressed a differing perspective on social media platform X, drawing comparisons to a prior token unlock by Solana.

On the 16th of March,
the Arbitrum supply increases dramatically.

Unlocks:
1. 674m ARB – Team
2. 438m ARB – Investors

The last time I observed such a significant supply unlock during a bull market of comparably large cap coin was with Solana in the previous cycle.

It ended up… pic.twitter.com/HSJG7WXbzu

— JJcycles (@JJcycles) March 3, 2024

The trader noted that Solana’s SOL token saw a price increase following the release of vested tokens, contrary to expectations of a price drop.

Arbitrum’s ARB Token Trails Competitors Amid Market Growth

Arbitrum, a leading layer-2 blockchain network, has experienced a decline in the value of its native cryptocurrency, ARB, relative to other prominent Layer-2 assets over the past day.

Despite a favorable trend in the sector overall, ARB was the weakest performer among the top five L2 tokens, registering a drop of over 2% during the reporting period, while the sector exhibited an average increase of 3.8%.

SpotOnchain’s analysis reveals significant sell-offs by whales, with around 3 million ARB tokens sold for $6 million just prior to the event.

Nevertheless, Arbitrum retains its status as the largest Ethereum-based layer-2 network, with DeFillama data showing a total locked asset value of $3.6 billion.

At the time of reporting, ARB was trading at $2.10, reflecting a 3.04% decrease in the last 24 hours.

In addition to Arbitrum, several other projects are preparing to unlock tokens this week. Aptos is set to release approximately 24 million tokens valued at around $329 million on March 13, representing a significant portion of the project’s circulating supply.

Similarly, projects such as ApeCoin, Flow, CyberConnect, Moonbeam, and Euler are on the verge of releasing vested tokens, collectively amounting to about $53 million in digital assets.

With around $2.7 billion worth of tokens scheduled for unlocking this week across various projects, the cryptocurrency sector is anticipating major developments and potential market shifts in the upcoming days.

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