Crypto News- Arbitrum, one of the leading layer-2 blockchain systems, is gearing up for an eagerly awaited event dubbed the “Cliff Unlock,” scheduled for April 16, 2024. According to reports from Token Unlocks, approximately 92.65 million ARB tokens, equivalent to around 3.49 percent of the total circulating supply, are poised to become available. As of now, this substantial sum commands a market value of approximately $116.73 million.
Countdown Begins: 92.65 Million ARB Tokens Unleashed in Arbitrum’s ‘Cliff Unlock’
The term “Cliff Unlock” denotes that no tokens will be released until the specified date, commonly referred to as the “cliff” or unlock date. On this pivotal day, a significant number of tokens will flood the market all at once.
Such events often have a profound impact on the market, ushering in increased volatility and heightened trading activity. Traders are closely analyzing potential price movements, aiming to capitalize on the ensuing fluctuations. Reflecting on past instances, the market reaction to previous Token Unlocks for ARB was substantial. Following the unlock, the token price experienced a notable dip, only to surge once more.
Anticipation is palpable within the crypto community as they speculate on the implications of the impending “Cliff Unlock.” Traders and investors alike are closely monitoring market dynamics, wary of the potential for significant price swings due to the sudden influx of ARB tokens. Opinions within the community are divided; while some anticipate a price surge post-unlock, others exercise caution, mindful of the increased volatility.
Unlocking Market Trends: Lessons from Past Arbitrum ARB Unlocks
Insights gleaned from previous Arbitrum ARB Unlocks shed light on potential market responses. Following the release of 1.11 billion ARB tokens in the last unlock event, the token price experienced an initial sharp decline, followed by a swift recovery. This pattern suggests that while short-term price fluctuations may occur, the long-term trajectory remains uncertain.
Notably, ARB’s price witnessed a four-day consecutive decline post-unlock, shedding over 25% of its value. Data from TradingView indicates that the asset associated with Arbitrum’s layer-2 blockchain dropped from $1.96 on March 16 to $1.44 by March 19.
Token Unlock Bonanza: Axie Infinity and Immutable X Join Arbitrum in Market Activity
In addition to Arbitrum, several other projects are poised to unlock tokens this week. Axie Infinity, for instance, is slated to release approximately 10.87 million AXS tokens on April 16, constituting around 7.6% of the project’s circulating supply, valued at approximately $1.055 billion. Similarly, Immutable X is set to release 34.19 IMX tokens worth $76.59 million into the market this week, representing 2.4% of the circulating supply.
These tokens, initially allocated for diverse purposes including the project’s foundation, community, core contributors, and investors, signify a dynamic period ahead for the crypto market.
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