Journalist
Posted:
- Whale interest in ARB declined even as its price remained stable.
- ARB’s network growth and velocity fell as well.
Despite the Arbitrum [ARB] network making significant progress over the last year, many addresses have started to lose faith in the network’s native token, ARB. More specifically, whales were starting to lose interest in the token.
Whales move away
According to Lookonchain, a massive whale sold all 14 million ARB tokens, valued at $14.84 million, around $1.05 since the 16th of November. Back in April, the same whale withdrew 22.55 million ARB tokens, worth $27.76 million at approximately $1.23, from Binance [BNB] and Gateio.
Additionally, in September, they deposited 8.44 million ARB tokens, equivalent to $6.92 million, to Binance, at a rate of $0.82. The overall loss incurred by the whale is estimated at $6 million.
The giant whale has dumped all 14M $ARB($14.84M) at ~$1.05 since Nov 16.
The whale withdrew 22.55M $ARB($27.76M) at ~$1.23 from #Binance and #Gateio in April.
And also deposited 8.44M $ARB($6.92M) to #Binance at $0.82 in Sept.
The total loss is $6M.https://t.co/46fMtKikbd pic.twitter.com/D2JRsGaGk3
— Lookonchain (@lookonchain) November 20, 2023
This sell-off could have notable implications for the overall state of ARB. Such large-scale selling might contribute to a decrease in the token’s value. The frequency and magnitude of these transactions might also lead to increased market volatility for ARB.
Other traders and investors in the ecosystem may closely monitor these activities, potentially impacting market sentiment. The total loss of $6 million by the whale could also influence perceptions of ARB’s stability and attractiveness within the crypto.
State of ARB
Since the 11th of November, the price of ARB witnessed a fall. It exhibited multiple lower lows and lower highs during that period. This showed that a slight bearish trend had emerged for the token.
However, over the last 24 hours, the price of ARB had grown by 3.17% in the last 23 hours. Only time will tell whether this momentum can be sustained.
However, the network growth of ARB contrasted with its rising price. This meant that new addresses had started to lose interest in the token. Moreover, the overall rate at which ARB was being traded had also fallen, which was shown by its falling velocity.
Source: Santiment
Realistic or not, here’s ARB’s market cap in BTC’s terms
Arbitrum’s potential growth could be catalyzed by proposed enhancements to the protocol. A recent proposal aims to build upon the success of the Short-Term Incentive Program (STIP) by introducing a gas rebate and trading incentive program.
This initiative, developed by Rage Trade, an Arbitrum native perp aggregator, seeks to amplify the positive impact of the STIP. The goal is not only to complement the achievements of the existing program but also to attract a substantial influx of new traders to the Arbitrum ecosystem.