TLDR
- Arbitrum announced the release of more than 1.11 billion ARB tokens on March 16 of this year.
- Circulation supply is expected to reach 2.375 billion.
- Unlocks can act as bearish catalysts, as per The Tie, causing massive inflationary pressures.
- ALGT appears as an alternative after a $1.1 Million private seed raise within two days.
Arbitrum announced the release of more than 1.11 billion ARB tokens, estimated at $1.24 billion, on March 16 of this year. Arbitrum will gradually unlock a certain number of tokens every four weeks, commencing a four-year period of phased unlocking of its digital tokens till 2027.
📅 Mark your calendars
$1.1 billion in $ARB unlocks are coming ⏳On March 16th, 2024, get ready for a massive cliff unlock as the Team and Investors unlock their tokens, totaling a staggering $1.26 billion. 🔥
But that’s not all! Starting from that day, every 16th of the… pic.twitter.com/Ayv4bKXmty
— Token Unlocks (@Token_Unlocks) August 16, 2023
The amount to be released is equivalent to 87% of the 1.275 billion tokens that are currently in circulating supply. There are fixed 10 billion tokens in total circulation for Arbitrum. Following the unlock, that figure will almost quadruple to 2.375 billion.
According to analysts, Unlocks can act as bearish catalysts for the price of tokens as they free up liquidity. Token prices are typically affected by unlocks that account for more than 100% of the average daily trading volume. They can put inflationary pressure on the market with increasing volatility and speculations.
Unlock of Arbitrum in September 2023 – Historical Insights
The one and only unlock for the $ARB happened on September 18, 2023. The day after unlocking saw a 3 percent spike in price, which was followed by a gradual 21 percent decline.
The imminent 2024 unlock presents both opportunities and risks for the cryptocurrency industry. It has historically been projected that the sheer scale of this release will have a short-term detrimental effect on the price of ARB.
Historical data suggests that ARB has the potential to recover significantly in the weeks following the unlock. Nonetheless, the market is speculative as there may be some immediate uncertainty and negative emotions following the unlock.
🌟 Is anyone curious about the pre/post-unlock analysis of @arbitrum ? 🌟
There was only one cliff unlock of $ARB
Here are the price impact results after the unlocks💡;– On the first day after unlocks, the price rose by 3%✨
– Then, it gradually dropped to -21% (around 21… pic.twitter.com/GQtxGCgoQF— Token Unlocks (@Token_Unlocks) September 18, 2023
Investors Shift Eyes towards Algotech (ALGT) After $1.1 Million Private Seed Round
With the speculations surrounding the market about ARB unlocking, investors are looking toward other projects that can secure their investments with massive potential for ever-growing profits. Algotech (ALGT) is emerging as a great alternative because of its lucrative rewards and user incentives.
The project has managed to raise over $1.1 million within two days and is poised to reach even greater heights as the market looks toward emerging opportunities. A key factor dictating the growth of the project is the exciting roadmap. The project includes a suite of cutting-edge trading features, including breakout trading, hedging, and arbitrage identification.
Community members of Algotech are entitled to governance rights, profit shares, and have access to advanced trading strategies, including hedging, mean reversion, and algorithmic consolidation.
The project is perfectly positioned to become a major stakeholder as we get closer to the bull run. With presale demand heating up, a surge from $0.04 to $1 could be highly likely. The deflationary ERC-20 coin is also backed by solid tokenomics that ensure continued reinvestment back into development to support the growth of the TradiFi platform.
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Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
The post Arbitrum Price Set to Face Pressure as Over 1 Billion Tokens Unlock in March 2024 appeared first on The Merkle News.
