Altcoin Arbitrum (ARB), one of the largest Layer 2 projects, is preparing for a major unlocking on March 16, 2024. Approximately 76% of the current supply will be unlocked in 4 days, creating both excitement and uncertainty among investors. What impact will the $2.2 billion ARB token entering circulation have on the price? How will Hop DAO’s $440 thousand token sale change this effect? In this article, we will examine the potential effects of the lock opening on Arbitrum and the Hop DAO sale on price.
Arbitrum is preparing to unlock
A major unlocking will occur in the Arbitrum (ARB) network on March 16, 2024. This event will release 76.62% of the supply as locked tokens enter circulation, creating uncertainty over the price.
Before the unlock, ARB price started to decline. This decline is also observed in other altcoins that are affected by the Bitcoin price. However, whales’ interest in ARB continues despite the decline in price. According to Lookonchain’s data, 2 whales purchased approximately $6.5 million worth of ARB tokens in the last 7 days.
Hop DAO will sell altcoins
Hop DAO, on the other hand, makes a different move before the lock opening. The protocol’s decentralized autonomous organization took action to sell 209,251 ARBs worth $440 thousand. It is stated that this sale corresponds to 25% of the entire ARB amount in DAO’s hands. Hop DAO explains the reason for the sale as financing protocol expenses and operation expenses. The proposal presented to the community was accepted with 85% “yes” vote.
Unlocking 1.12 billion ARB tokens worth $2.2 billion will significantly increase the supply, which could create selling pressure. This could cause the price to drop in the short term. However, the long-term impact of the unlock remains unclear. Experts state that the impact of increased supply on the price will depend on investor demand and increased use of the Arbitrum network.
How does the Hop DAO sale affect the price?
Hop DAO’s $440 thousand ARB sale may add to the sales pressure created by the lock opening, causing the price to drop further. However, the lack of clear information about when the sale will take place makes its impact on the price uncertain. The upcoming unlock on Arbitrum and the token sale of Hop DAO create uncertainty on the price. Investors need to make their investment decisions by taking these developments into consideration.
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