Since its launch earlier this year, the price of Arbitrum (ARB) has faced significant challenges. This altcoin entered a bearish market trend, and as the bears gained more control, the ARB token’s price declined even further. This continuous price drop led to substantial selling pressure, with even whales getting involved.
Specifically, as the price of ARB continued its downward trajectory, whales began offloading their holdings. Reports from the on-chain tracking tool Lookonchain showed that some of the largest whales sold millions of ARB tokens, despite incurring millions of dollars in losses.
The first notable transaction was from Wintermute Trading, which sent 4.35 million tokens worth $3.36 million to the Binance exchange. Following that, another whale transferred 3.8 million tokens worth $2.93 million to Binance.
A subsequent chart provided by the monitoring tool revealed that seven whales collectively sold 20.4 million ARB tokens on the open market within a 30-hour timeframe.
In total, these whales spent approximately $24.19 million to acquire their ARB holdings over the past few months. However, the recent sales amounted to $16.05 million. This means that these whales collectively lost more than $8 million in this process, resulting in a 34% loss compared to their initial investment.
Is a reversal on the horizon? Despite the continuous selling pressure causing ARB’s price to plummet, it still maintains the highest Total Value Locked (TVL) among all Layer-2 Ethereum networks. Its TVL currently stands at $2.3 billion, compared to $970 million for Polygon and $798 million for Optimism.
This indicates a high level of trust in the network, especially considering that the daily active user count remains above 100,000.
For ARB’s short-term performance, it remains dependent on whether the cryptocurrency market sentiment shifts soon. Naturally, if the price of Bitcoin starts to rise, along with improved market sentiment, altcoins like ARB are likely to follow suit and recover.
As of now, the price of ARB is at $0.7731, down 6.46% in the past day and 13.47% over the past week.