The ARB has fallen more than 15% over the past 30 days.
Beginning in March, ARB will be launched every month.
Arbitrum (ARB) price on August 16 amplified the decline it has been recording for a month. It broke from $1.12, the support low (bottom) it formed in August.
Having stayed sideways above this support so far in August, ARB plunged to $1.08 at the time of this publication. This is a price level not seen in a month and a half.
Therefore, ARB records a depreciation of more than 15% for one month when it reached $1.34. That was the highest price since May.
This drop occurs prior to approaching unlocking of the ARB What today remembered the Token Unlocks Explorer.
The explorer noticed On March 16, 2024, there will be a “mass unlock” of 1.11 billion ARB tokens, currently the equivalent of $1.2 million. And he also pointed out that from now on there will be more unlocks every 16th of the month for the next four years.
Of the ARB tokens that will be unlocked next March, just over half are owned by the team behind the ARB ecosystem and its advisors. The rest now belongs to investors.
Around 5 billion ARBs are currently blocked, accounting for 51% of supply. And the unlock expected in March 2024 is about 20% of the total lock.
When crypto assets are unlocked, their holders, who are already in control of them, you may decide to sell them, especially if they are making a profit. Because of this, the market usually pays attention to the dates when the unlocks are scheduled because when the selling pressure is greater than the supply, the price goes down.
An example of this is the previous unlock of Arbitrum. This happened on April 17 with a total of 478,780 ARB (less than half of what was expected for March) and After that, the price fell by 50% for two months.
It is also sometimes the case that other investors in the market will sell before the event occurs for fear of severe selling pressure that could push the price lower. This leads to previous devaluations like the current one at ARB as well as what happened last month at the sandbox token (SAND), a fact reported by CriptoNoticias.
However, it is important to keep in mind that the depreciations may not only be due to the approach of the blockade, but also to other market issues, such as the fact that the overall demand for crypto assets has decreased recently. That’s why Bitcoin (BTC), for example, has been lateralizing around $29,000 since the end of July.
What is arbitration?
Arbitrum (ARB) is the native governance token of the network of the same name. At the moment ARB is the 37th largest crypto asset on the marketthat’s $1,380 million.
The Arbitrum Network is a Layer 2 scalability solution for Ethereum designed to improve the capabilities of its smart contracts, reduce transaction costs and increase their speed.