Arbitration (ARB) is at risk of a significant price drop due to the upcoming token unlock on April 16th. token unlock events are known to be a recipe for high volatility due to what can happen after it occurs.
$107M Arbitrage Tokens Set to Be Unlocked
Data of TokenUnlock shows that 92.65 million Arbitration tokens (3.49% of its circulating supply) will be unlocked on April 16th. 56.13 million ($65.10 million) of these tokens will be distributed to the team, future team and advisors, while the remaining 36.52 million ($42.36 million) will be distributed to investors.
The unlocking of tokens is usually followed by a wave of massive sales by beneficiaries, which causes the token’s price to fall. As such, Arbitrum Price may also suffer the same fate when these tokens are distributed. However, this will not be the first time considering that Arbitrum suffered a significant price drop during the last token unlock on March 16.
Data from CoinMarketCap shows that the price of Arbitrum, which closed the previous day above $2, fell to $1.8 on March 16. However, it is important to note that the magnitude of this month’s token unlock is nothing compared to last month when 1.11 billion Arbitration tokens (41.89% of its circulating supply) have been unlocked.
Therefore, the impact of any potential market sell-off may not be as severe as last time. Despite that, Arbitration it is still at risk of falling below the $1 support level for the first time in a long time, as it is currently hovering around that price range.
Other token unlocks to watch out for
US$76.96 million in Infinite Axie (AXS) tokens (7.6% of circulating supply) will also be unlocked this week on April 17th. 3.10 million of these tokens will be distributed as staking rewards, while 6.08 million and 1.69 million tokens will be distributed to the team and ecosystem fund respectively.
Meanwhile, like Arbitrum, Apecoin (APE) is another token that is at risk of falling below $1 with its next token unlock on April 17th. $18.57 million worth of Apecoin tokens (2.48% of circulating supply) will be unlocked, with the majority of these tokens going to the Yuga Laboratories founder. A significant drop in the price of Apecoin could further worsen the bearish outlook for the Yuga Labs ecosystem, as the Bored Monkey NFT it is already down 90% from its peak.
ARB price drops to $1.11 | Source: ARBUSDT on Tradingview.com
Featured image from CoinGape, chart from Tradingview.com
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