Arbitrum: Will lack of whale interest affect ARB?

Jour­nal­ist

Post­ed: Novem­ber 21, 2023

• Whale inter­est in ARB declined even as its price remained stable.
• ARB’s net­work growth and veloc­i­ty fell as well.

Despite the Arbi­trum [ARB] net­work mak­ing sig­nif­i­cant progress over the last year, many address­es have start­ed to lose faith in the network’s native token, ARB. More specif­i­cal­ly, whales were start­ing to lose inter­est in the token.

Whales move away

Accord­ing to Lookon­chain, a mas­sive whale sold all 14 mil­lion ARB tokens, val­ued at $14.84 mil­lion, around $1.05 since the 16th of Novem­ber. Back in April, the same whale with­drew 22.55 mil­lion ARB tokens, worth $27.76 mil­lion at approx­i­mate­ly $1.23, from Binance [BNB] and Gateio.

Addi­tion­al­ly, in Sep­tem­ber, they deposit­ed 8.44 mil­lion ARB tokens, equiv­a­lent to $6.92 mil­lion, to Binance, at a rate of $0.82. The over­all loss incurred by the whale is esti­mat­ed at $6 million.

The giant whale has dumped all 14M $ARB($14.84M) at ~$1.05 since Nov 16.

The whale with­drew 22.55M $ARB($27.76M) at ~$1.23 from #Binance and #Gateio in April.

And also deposit­ed 8.44M $ARB($6.92M) to #Binance at $0.82 in Sept.

The total loss is $6M.https://t.co/46fMtKikbd pic.twitter.com/D2JRsGaGk3

— Lookon­chain (@lookonchain) Novem­ber 20, 2023

This sell-off could have notable impli­ca­tions for the over­all state of ARB. Such large-scale sell­ing might con­tribute to a decrease in the token’s val­ue. The fre­quen­cy and mag­ni­tude of these trans­ac­tions might also lead to increased mar­ket volatil­i­ty for ARB.

Oth­er traders and investors in the ecosys­tem may close­ly mon­i­tor these activ­i­ties, poten­tial­ly impact­ing mar­ket sen­ti­ment. The total loss of $6 mil­lion by the whale could also influ­ence per­cep­tions of ARB’s sta­bil­i­ty and attrac­tive­ness with­in the crypto.

State of ARB

Since the 11th of Novem­ber, the price of ARB wit­nessed a fall. It exhib­it­ed mul­ti­ple low­er lows and low­er highs dur­ing that peri­od. This showed that a slight bear­ish trend had emerged for the token.

How­ev­er, over the last 24 hours, the price of ARB had grown by 3.17% in the last 23 hours. Only time will tell whether this momen­tum can be sustained.

How­ev­er, the net­work growth of ARB con­trast­ed with its ris­ing price. This meant that new address­es had start­ed to lose inter­est in the token. More­over, the over­all rate at which ARB was being trad­ed had also fall­en, which was shown by its falling velocity.

Source: San­ti­ment

Real­is­tic or not, here’s ARB’s mar­ket cap in BTC’s terms

Arbitrum’s poten­tial growth could be cat­alyzed by pro­posed enhance­ments to the pro­to­col. A recent pro­pos­al aims to build upon the suc­cess of the Short-Term Incen­tive Pro­gram (STIP) by intro­duc­ing a gas rebate and trad­ing incen­tive program.

This ini­tia­tive, devel­oped by Rage Trade, an Arbi­trum native perp aggre­ga­tor, seeks to ampli­fy the pos­i­tive impact of the STIP. The goal is not only to com­ple­ment the achieve­ments of the exist­ing pro­gram but also to attract a sub­stan­tial influx of new traders to the Arbi­trum ecosystem.