In a recent development, GSR Markets withdrew 7.91 million ARB tokens, worth $4.38 million, from Coinbase.
Historical transaction data suggests that these tokens will be replenished after a brief period. However, ARB’s struggles continue, with the token hitting an all-time low of $0.43 and plummeting 43% year-to-date.
五小时前 GSR Markets 从 #Coinbase 提出 791 万枚 $ARB ，价值 438 万美金
根据之前的交易记录，这部分代币将在一段时间后充值进 #Binance 👀
钱包地址 https://t.co/UIkn9ojQv1 pic.twitter.com/z6BewMBge6
— Ai 姨 (@ai_9684xtpa) August 22, 2024
The Arbitrum community’s approval of a temperature check proposal to introduce ARB staking offers a glimmer of hope. This added utility could incentivize holders to retain their tokens, while attractive APYs may lure yield farmers. Nevertheless, the primary culprit behind ARB’s weakness is its supply dynamics.
How Steady ARB Token Unlock Has Affected Holders
A steady stream of token unlocks has taken a toll on ARB holders. On August 16, 92.65 million ARB tokens (2.77% of the circulating supply) were released for team members and investors. Another identical batch is slated for September, with more to follow in the coming months. This has led to criticism of ARB’s “low float, high fully diluted valuation” model, which some retail investors deem uninvestable.
$ARB is the worst-performing token among the top 100 cryptos.
ARB recently hit an all-time low of $0.43. It is currently trading -65% in YTD terms.
Today, a temperature check proposal to introduce ARB staking was passed by the Arbitrum community.
Added utility for the ARB… pic.twitter.com/6JJmb9e9jC
— cryptoodyssey (@odyssey_0x) August 16, 2024
Furthermore, the impending ARB staking and fee sharing mechanisms are facing scrutiny. Although the community has shown interest, the final proposal won’t be presented until October, leaving the token’s future uncertain. As ARB continues to navigate these challenges, its performance among the top 100 cryptocurrencies remains underwhelming.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!