- Arbitrum’s weekly report revealed a new major transaction milestone.
- ARB sees heavy outflows from whales, possibly curtailing its potential upside.
Ethereum’s layer 2 network Arbitrum just released its latest weekly report. Among the things highlighted was a major network milestone which underscores the rapid pace at which the network is growing.
Read Arbitrum’s [ARB] price prediction 2023-24
According to the weekly Arbitrum report, the network recently surpassed the 300 million transactions milestone. This achievement confirms that the network has been experiencing robust utility and growth. Not bad for a network that started operating during a bear market.
3/6 Arbitrum Milestones:
Arbitrum has recently hit 300 million transactions. 🙌 https://t.co/kv5djqOTp7
— Arbitrum (💙,🧡) (@arbitrum) July 14, 2023
Aside from the milestone, Arbitrum also confirmed that it will hold Security Council elections on 15 September. According to the official announcement, the elections will feature multiple sensitive topics, including critical risks that Arbitrum is exposed to.
Some interesting on-chain observations
While the transaction milestone represented a step in the right direction, some growth metrics have not performed well. For example, Arbitrum’s network growth metric has been hovering near its lower range for the last six months.
Source: Santiment
On the other hand, Arbitrum’s native token ARB witnessed a surge in its mean coin age metric. This suggested that most of the token holders have been hodling rather than selling. This is despite ARB’s bearish price action.
ARB set a new historic low of $4.20 in June this year. The same historic low represented a 70% dip from the token’s highest price point in the last six months. It exchanged hands at $5.80 at press time after a slight recovery from its historic lows.
Source: TradingView
Are whales losing interest?
ARB has seen a significant amount of outflows according to the Money Flow Index (MFI) despite the slight price rally. Further investigation into the outflows revealed that whales recently sold off a substantial amount of their holdings.
This reflected a sizable dip in the supply distribution between 5 and 6 July. The same supply distribution metric didn’t indicate signs of re-accumulation.
Source: Santiment
This selling pressure from whales may have held back ARB’s potential upside this week. Although it is worth noting that the cryptocurrency experienced some bullish momentum, especially on Wednesday (12 July). Nevertheless, it had already given up most if not all of Wednesday’s gains at the time of writing.
How many are 1,10,100 ARBs worth today
Will we see a resurgence of whale demand? Well, that remains to be seen but it is not entirely impossible. The recent transaction milestone confirmed the state of network demand and this could potentially strengthen ARB’s market sentiment.