Is ARB Poised to Shatter Expectations or Crash Under the Weight of 92.65 Million New Tokens?

Is ARB Poised to Shatter Expectations or Crash Under the Weight of 92.65 Million New Tokens?

Mark your calendars for July 16th — a day when 92.65 million ARB tokens are set to flood the market. That’s not just some random drop; it’s an $8.53 million injection, translating to about 1.65% of the circulating supply. Now, here’s the kicker: these tokens aren’t just tossed into the wild. A hefty chunk — roughly 56.13 million — is earmarked for the Arbitrum team, future team players, and advisors, with the rest landing in investors’ hands. Sounds like a recipe for market tremors, right? But hold on… token unlocks don’t always mean a sell-off frenzy. How these recipients choose to handle their newfound ARB could tilt the price scales in a blink. What’s even more fascinating is how the broader Arbitrum ecosystem is gearing up, with fresh revenue streams poised to add muscle beyond just these token moves. So, as this release looms, the real question isn’t just how many tokens hit the market — it’s whether the buying appetite will keep pace or let the price dance take a tumble. Ready to dive deeper into how this could shake up ARB’s price action and what traders are buzzing about? LEARN MORE.

On 16th July, 92.65 million ARB are scheduled to enter circulation. The release is valued at around $8.53 million and makes up 1.65% of the token’s currently released supply.

The unlocked tokens will be divided between two main groups. Around 56.13 million ARB will go to the Arbitrum team, future team members, and advisors. The remaining 36.52 million ARB will be allocated to investors.

arbitrum
Source: The Tokenomist

Here, it’s worth noting that token unlocks don’t always lead to immediate selling. However, the new supply can move price in the short-term, depending on how recipients manage their holdings.

AMBCrypto previously reported that 10% of fees collected from Robinhood Chain and other Arbitrum Layer-2 networks will be directed to the Arbitrum ecosystem. This development is separate from the token unlock, but the growing source of ecosystem value may also be factoring into ARB’s longer-term outlook.

How is ARB’s price doing?

Despite the impending event, ARB has recovered on the charts in recent sessions.

In fact, after falling towards the $0.07 range, the altcoin moved back above $0.09. Perhaps, there was buying interest ahead of the unlock.

arbitrum
Source: TradingView

The RSI was near 63 at press time meaning that the buyers had the upper hand without moving into overbought territory. MACD also turned positive, and that supported the move up.

The unlock could test this recovery. The future depends on whether buying demand stays strong enough to absorb the additional tokens.

Hope for derivatives traders?

Finally, ARB’s Aggregated Open Interest went up to around $60.9 million. Many more traders seemed to be holding active positions in the market.

Source: Coinalyze

At the same time, the average funding rate was also positive at 0.0083%. Long positions appeared to be outweighing short positions, with traders largely expecting further upside on the charts.

What’s interesting is that this long positioning can also increase volatility if the market moves in the opposite direction.


Final Summary

  • Arbitrum will unlock 92.65 million ARB on 16th July.
  • At the time of writing, ARB’s price had recovered above $0.09, with traders being optimistic too.

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