The Arbitrum[ARB] token, formerly a leader in the layer 2 token market, has recently been overtaken by new entrants in the cryptocurrency market, and the whales seem to be intent on selling.
Many whales started to lose interest in the ARB coin as the price of ARB dropped. An important whale recently started a large sell-off of 3.8 million ARB tokens, which is noteworthy. On the Binance platform, these $3.21 million worth of tokens were purchased with ETH.
The whale suffered a significant loss of almost $1.3 million as a result of this action. It’s interesting to note that the same whale withdrew an incredible 17.62 million ARB tokens at the beginning of April. Throughout these transactions, the average withdrawal cost was $1.19. The whale still held 13.78 million ARB tokens, worth $11.5 million, as of the time of publication.
According to Chinese cryptocurrency journalist Colin Wu, there are three entities. The first whale transferred 3.8 million ARB tokens to Binance and sold them there for $0.77 each, making a profit of 1,812 Ether (ETH). Surprisingly, this whale still has 13.7 million ARB tokens on the market.
3.63 million ARB tokens were sold by vladilena2.eth, another well-known whale, at a price of $0.83 per token. Notably, this wallet also has a portfolio of more than $14 million worth of alternative coins, and only yesterday, it received 2,800 Staked Ethers (stETH) from Lido Finance (LDO).
When the price of the ARB token was $0.79, the third whale made the decision to transfer 2.8 million ARB tokens to Binance. All three whales have the chance to benefit from their investments because the price of the ARB token has fallen below $0.77 as of right now.
Be it as it may, Arbitrum continues to hold the lead as the Layer 2 (L2) solution for Ethereum (ETH) despite the recent decline in the value of the ARB token. With $5 billion in total value locked (TVL), it makes up 55% of Ethereum’s L2 ecosystem. The token’s all-time low on the major spot exchanges was reached today, September 11, 2023, indicating the difficult market circumstances.
The market price of ARB, which stood at $0.836 at the time, made the effects of declining whale interest clear. Additionally, during the previous month, the network’s growth rate and transaction velocity both saw declines, indicating possible difficulties for ARB.
Short bets on ARB tokens started to dominate long positions as traders’ sentiments changed in response to the changing market environment. This trend was highlighted by data from CoinGlass , where short positions made up a considerable 55% of the total and long positions only accounted for 45%.
At the time of writing, the price of ARB was down by 3.51% to $0,775.
The Arbitrum governance structure takes proactive steps to revitalize the protocol in response to these difficulties. A detailed proposal for the Arbitrum DAO was recently released by the Incentives Working Group. It describes a one-time scheme that will distribute up to 75 million ARB tokens to active Arbitrum protocols.
This effort aims to guarantee the transparent distribution of DAO-owned ARB tokens f or incentive purposes while offering essential help for immediate community needs.
It’s significant because grantees taking part in this program are required to provide frequent updates on grant performance, fostering accountability and openness within the ecosystem.
The suggested framework stresses the fair and efficient allocation of incentives, and it is supported by community-wide accepted standards.
The main goals include promoting network expansion, enabling incentive grant experimentation, investigating novel grant and developer support models, and methodically collecting data to evaluate the effectiveness of distributed grants.