As the bear market continues, several investors are exiting their positions in different blockchain networks. An example is the Ethereum layer-2 network Arbitrum, which recently recorded a massive selloff of $16 million worth of ARB tokens from seven whales.
ARB Whales Dump $16M
In March 2023, Arbitrum launched its long-anticipated native cryptocurrency dubbed ARB. Around that time, the network saw impressive engagement from users. For example, the layer-2 network superseded the trading volume of larger blockchain networks like the BNB Chain.
However, current analysis shows that large investors are beginning to lose interest in the once-prominent altcoin. Blockchain analytics platform Lookonchain stated in a tweet that seven whales sold off 20.41 million ARB tokens at a loss within 30 hours. The total amount derived from the token sale was $16 million.
Based on the amount the whales acquired the asset, their losses sat at $8.15 million, representing a 33.67% decline in their Return on Investment (ROI).
Meanwhile, ARB Whales’ departure trails the bearish trend that has engulfed the broader altcoin market due to recent news about a potential mass liquidation of crypto assets linked to the defunct crypto exchange FTX. Assets like SOL, DOGE, TRX, and MATIC, may take the biggest hit if the liquidation plan is carried out.
How ARB Token Has Been Fairing
A crypto whale is an individual or entity that holds a substantial amount of a particular cryptocurrency. The actions of a whale can potentially impact a cryptocurrency’s price performance and consequently affect other users for good or bad.
Notably, the sell-off action by the seven ARB whales had minimal effect on the price of the underlying cryptocurrency. Notwithstanding, the asset has seen a significant price drop ever since its all-time high (ATH) of $1.75 in April.
Over the past 30 days, ARB has dropped by 32% while ranking #42 in the list of cryptocurrencies by market capitalization. The cryptocurrency currently trades at $0.78.
Source: CoinStats
