In the last 24 hours, significant quantities of the popular Layer-2 (L2) token Arbitrum (ARB) were transferred to cryptocurrency exchanges, sparking interest and speculation in the broader market. According to the on-chain data tracker spot on chain, two whale investors deposited a total of 2.77 million ARB to Binance (BNB) on the afternoon of March 9th.
Major Transfer in ARB
At the time of writing, the transferred amount was valued at $4.87 million. It was also noted that one of the whales transferred 916,787 tokens to Binance at the current rate. The whale had withdrawn this amount 2.5 months earlier and could have made a profit of $608,000 if they decided to cash out. Similarly, the other whale sent 1.85 million ARB to Binance, realizing an unrealized profit of $2.67 million. If both entities decide to sell their tokens at the current price, they would together make a profit of $3.3 million.
Using Santiment data, it is indicated that this development is part of a broader increase in high-value transactions for ARB throughout the week. The increase in whale transactions occurred before two significant events in the Arbitrum ecosystem. The first was the eagerly anticipated Denali Upgrade scheduled for March 13th, which was expected to significantly reduce transaction fees in Layer-2 projects. However, this could benefit not only L2s but particularly Arbitrum due to the positive sentiment surrounding it.
Key Unlocking in ARB
Secondly, ARB could witness its largest unlocking event to date on March 16th. A massive 1.1 billion tokens, constituting 76% of the circulating supply, will be distributed to the team and investors. The token analysis firm stated that if prices remain unchanged, ARB’s market value could rise from the current $2.65 billion to over $5 billion following the unlock. Additionally, ARB could enter the top 25 cryptocurrencies by market value, up from its current position within the top 50. On the other hand, such a large supply entering circulation could create inflationary pressure on ARB and potentially lead to significant losses.
