Market maker Wintermute Trading has purchased Arbitrum (ARB) tokens valued at $36.3 million ahead of the scheduled token unlock on March 16th.
Arbitrum (ARB) Purchase
According to data provided by Spot On Chain, this is not the first purchase by the market maker. As of the time of writing, the latest acquisition reveals that Wintermute Trading now holds a total of 29.48 million ARB.
The significance of the token unlock is interpreted as the release of previously locked tokens into circulation. This process can be seen as an increase in supply. Therefore, if demand does not meet the increased supply, the price of the related cryptocurrency could fall.
Arbitrum’s upcoming token unlock will be one of the biggest events of the year. In the Ethereum [ETH] Layer 2 project, a total of 1.45 billion tokens will enter circulation. This number corresponds to 15.7% of the total supply and is valued at $2.93 billion as of today.
Looking at the major company’s move, the token unlock in Arbitrum may not lead to a price crash. It is possible that the company believes in ARB’s recovery and has made purchases accordingly, which could mean any potential decline may not last long.
At the time of writing, the ARB price was trading at $1.93. This value represents a 6.50% decrease over the last 24 hours. Despite the recent price drop, sentiment around the project continues to change. Previously, ARB’s Weighted Sentiment had a negative outlook.
However, as of March 13th, this value has moved out of the negative zone. Weighted Sentiment is an indicator that forms based on positive/negative comments about the Arbitrum project. Therefore, the metric’s current outlook suggests that the discussion around ARB is on the rise.
Outlook for ARB Investors
Three months ago, the number of ARB investors was indicated to be 985,000. However, as of the time of writing, this number has risen to 1.17 million. This increase demonstrates investors’ belief in the token’s long-term potential.
Considering the social side of the market, on-chain data shows an increase in Arbitrum’s dominance. Compared to other cryptocurrencies in the market, there has been an increase in social dominance, indicating that discussions about the project are also rising.
Although the increase in social dominance might indicate a local peak, indicators seem to suggest otherwise. Accordingly, the token could perform well with an upward movement after the token unlock.
Despite all this, a decrease in the number of active addresses transacting on the network has been observed. The decline of active addresses to 24,900 suggests that the buzz around ARB is waning. It has been observed in the past that the less a cryptocurrency is discussed, the lower the chances of selling.
