- ARB appreciated by 3% on the first day of the unlock, followed by a long downtrend
- The upcoming cliff unlock next year could be a big challenge for ARB
Ever since its launch in March earlier this year, Arbitrum’s [ARB] tokenomics have been a source of significant interest in the crypto-space.
Realistic or not, here’s ARB’s market cap in BTC terms
The most notable has been the token unlock feature, which involves a staggered release of a fixed number of tokens at predetermined time intervals. Thanks to the fact that these events add inflationary pressure and act as bearish catalysts for ARB, experts and traders actively monitor their schedule.
ARB fluctuates after unlocks
Token analytics firm Token Unlocks took to social platform X to sketch a price impact analysis of ARB in the aftermath of an unlock.
It was observed that ARB appreciated by 3% on the first day of the unlocks, as shown below. Then, a long three-week downtrend ensued, one which caused the price to dip by 21%.
However, 25 days after the unlock, the prices started to recover dramatically, rising by nearly 19% from the unlock day. A roller coaster, ain’t it?
Recall that about 1.275 billion ARB tokens, out of the maximum supply of 1o billion, were released as part of the March Airdrop into public hands. The rest were set aside for investors and core contributors.
Overall, 49% of the maximum supply has been locked while 5.07 billion, or 51%, still remains unlocked, as per Token Unlocks’
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Author: Aniket Verma
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