Arbitration (ARB) risks a significant price drop due to the upcoming token unlock on April 16. These token unlock events They are known to be a recipe for high volatility due to what could happen after their occurrence.
$107 million Arbitrum tokens to be unlocked
Data of TokenUnlock shows that 92.65 million Decision The tokens (3.49% of its circulating supply) will be unlocked on April 16. 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.
Token unlocks are usually followed by a wave of massive selling by beneficiaries, causing the price of the token to drop. As such, The Arbitrum price It could also meet the same fate once these tokens are distributed. However, this will not be the first time, considering that Arbitrum suffered a significant price drop during the last unlock of its token on March 16.
Data CoinMarketCap shows that the price of Arbitrum, which closed the previous day above $2, fell to $1.8 on March 16. However, it is worth noting that the magnitude of this month's token unlock is nothing compared to last month, when 1.11 billion were purchased. Decision Tokens were unlocked (41.89% of their circulating supply).
Therefore, the impact of any potential sell-off on the market might not be as severe as last time. Nevertheless, Decision It is still at risk of falling below the $1 support level for the first time in a long time as it is currently trading around that price range.
Other token unlocks to consider
76.96 million dollars in infinite axie (AXS) tokens (7.6% of circulating supply) will also be unlocked this week on April 17. 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 17. $18.57 million worth of Apecoin tokens (2.48% of circulating supply) will be unlocked, with the majority of these tokens going to the nft-in-proof-takeover/” rel=”nofollow”>Yuga Laboratories founder. A significant drop in Apecoin price could further aggravate the bearish outlook for the Yuga Labs ecosystem, as the nft-costs-a-staggering-429000/” rel=”nofollow”>nft Bored Monkey It is already down 90% from its peak.
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ARB price drops to $1.11 | Source: ARBUSDT on Tradingview.com
Featured image from CoinGape, chart from Tradingview.com
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