Arbitrum, an Ethereum-based Layer-2 (L2) scaling protocol, is preparing to release over 1.1 billion tokens according to its vesting schedule.
This update comes from the crypto analytics platform Messari, which reports that Arbitrum will unlock precisely 1,111,750,000 ARB tokens, representing 11.2% of its total allocation, during the Token Generation Event (TGE).
Arbitrum Token Unlock Details and Market Dominance
In the upcoming token unlock event, the Offchain Labs team and advisors are slated to receive 673,500,000 ARB tokens, representing approximately 6.74% of the total tokens allocated during the Token Generation Event (TGE). The remaining 438,250,000 ARB tokens will be distributed to investors associated with Offchain Labs, accounting for 3.38% of the total allocation at TGE.
💸Biggest @Arbitrum unlock ever happening this weekend… will almost double its circulating supply.
📊 from @MessariCrypto
Full story below🧵 pic.twitter.com/ytq3N1hPEu
— Laura Shin (@laurashin) March 15, 2024
Arbitrum relies on Optimistic Rollups technology as its Ethereum scaling solution. Notably, the protocol has demonstrated significant market dominance, particularly in decentralized exchange (DEX) volume and total value locked (TVL), currently valued at $4.087 billion.
The scheduled release of 1.11 billion ARB tokens is anticipated to occur in less than three hours from the current time projection. This token unlock represents 76.62% of the circulating supply, valued at $2.33 billion.
Impact of Token Unlocking on ARB Price
Token unlocking events are common in the cryptocurrency ecosystem and typically lead to an increase in the circulating supply of the coin involved. This influx of tokens may dilute the coin’s valuation relative to its price.
ARB faces the risk of a sell-off from parties who are beneficiaries of the token allocation. If significant selling pressure occurs, it could result in a substantial price drop for ARB.
Despite the looming market reality, ARB’s price is currently showing positive momentum, with a 1.7% increase to $1.90 over the past 24 hours. The token’s price surged from a low of $1.81 to an intraday high of $1.94, demonstrating resilient market action.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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