Whale Migration: $58M surges into exchanges as Arbitrum tokens unlock

After the unlocking of a significant number of vested tokens on March 16, whales who hold Arbitrum (ARB) have begun moving their digital assets into cryptocurrency exchanges. According to blockchain analysis firm Lookonchain, at least 11 whales have deposited their tokens into exchanges since the unlock. This collective deposit amounts to 34 million tokens, which is valued at nearly $58 million at the time of writing.

This event follows the unlocking of 1.1 billion ARB tokens (worth $2.32 billion) by the layer-2 blockchain project Arbitrum on March 16. Token Unlocks data reveals that 673.5 million tokens were unlocked for advisers and team members, while 438.25 million were released for investors. It is important to note that this unlocking was done all at once, known as a “Cliff Unlock.”

The release of such a large number of tokens sparked predictions that many holders would take short positions against the token. Some community members even posted on social media that they sold their ARB. Others hoped that the token’s price would not plummet but instead follow the trend of previous vesting unlock periods, during which token prices increased.

Unfortunately, the price of ARB tokens did not go as expected. In the week leading up to the token unlock, ARB token prices consistently dropped. The token reached a high of $2.22 on March 13 but fell to $1.84 on March 16, the day of the unlock. On March 17, it dropped even further to $1.64, hitting a seven-day low. Currently, the token is trading around $1.70, approximately 29% below its all-time high of $2.39 on January 12.

While the unlocked tokens have already caused a 23.42% price decrease, holders may not find relief anytime soon. According to Token Unlocks, Arbitrum is scheduled to release another 92.65 million tokens on April 16. These tokens, valued at approximately $157 million based on current market prices, will also be released all at once to the Arbitrum team, advisers, and investors.