Summary
TLDR: Arbitrum’s native cryptocurrency ARB experienced a decline compared to other Layer-2 assets, with two whales offloading tokens ahead of two significant events – the Ethereum Dencun upgrade and a $2 billion token unlock. The Dencun upgrade aims to reduce costs for Layer-2 networks, potentially empowering Arbitrum to compete with Layer-1 chains like Solana. The token unlock event may impact investor sentiment, with ARB being the weakest performer among the top five L2 tokens.
Key Points
1. Arbitrum’s native cryptocurrency ARB experienced a decline compared to other leading Layer-2 assets, coinciding with anticipation surrounding two significant events expected to influence its price. SpotOnchain detected two whales offloading approximately 3 million tokens for $6 million ahead of these events.
2. Ethereum is set for its Dencun upgrade on March 13, promising reduced costs for Layer 2 blockchain networks. This upgrade is expected to empower Layer-2 networks like Arbitrum to compete favorably against Layer-1 chains such as Solana, potentially attracting more digital asset entrepreneurs to the ecosystem.
3. Following the Dencun upgrade, Arbitrum will have a $2 billion token unlock event, doubling its circulating supply. This event involves the release of 1.1 billion ARB tokens, constituting 77% of the circulating supply and currently valued at $2.38 billion. Investors typically view token unlocks as a bearish event that may exert selling pressure on the market, potentially impacting investor sentiment towards Arbitrum.