Following a $2.3 billion token unlock in March, Arbitrum (ARB-USD) whales have transferred a hefty $18.5 million in ARB tokens to the world’s largest cryptocurrency exchange, Binance. This transfer comes after another recent transfer of $58 million in ARB to exchanges, sparking varied reactions.
Bearish Performance for ARB May Be Incoming
Blockchain analytics platform Lookonchain spotted four wallets offloading 11.34 million ARB tokens onto Binance in a series of transactions. Arbitrum’s community response to the transfer(s) has been mixed, with some viewing the whale activities as non-bearish and others expressing fears that, because the tokens were transferred to an exchange, bearish performance for ARB may be incoming.
Following the token release, ARB’s price experienced a rollercoaster. Between March 15 and March 20, ARB nosedived -31% from $2.11 to $1.44. It has since recovered some losses and trades in the $1.71 value area.
If the recent token release wasn’t enough to cause anxiety, Arbitrum has another release slated for April 16. This release will see 92.65 million more ARB tokens distributed to advisers, team members, and investors. ARB’s holders are already fearful of how the next release will impact its performance.
Arbitrum DAO’s Make Big Proposals
The big swings in ARB’s price action have strengthened its governance activity. In a surprising twist, the Arbitrum Decentralized Autonomous Organization (DAO) is proposing a $3.3 million investment in memecoins to attract new users and stimulate network activity. This proposal shows a shift from Arbitrum’s historical focus on emphasizing DeFi protocols to fostering a memecoin-friendly ecosystem. Another proposal is a request for a grant worth $788,000 to take over the r/Cryptocurrency subreddit.
Technical analysts don’t expect major moves from Arbitrum independent of the broader cryptocurrency market until the next token drop on April 16.
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