Wintermute Trading, valued at $36.3 million Arbitrum added it to its token portfolio. This happened before the token unlocking, which is scheduled for March 16. As Koinfinans.com reported, through data from Spot On Chain, it is noteworthy that this move is not the first token that the market has purchased. At press time, Wintermute Trading had a total of 29.48 million ARB.
Token unlocking means putting previously locked tokens into circulation, leading to an increase in supply. However, according to the market maker, this may not be a negative development for Arbitrum. Because even if there is a price drop, there is a high probability of a rapid recovery.
Arbitrum’s token unlocking will be one of the biggest events of this year. On scheduled date, the Ethereum Layer-2 project aims to issue 1.45 billion tokens. This represents 15.7% of the total supply and an amount worth $2.93 billion.
Investors tend to take long positions because a significant increase in the number of ARB holders is observed. Three months ago, the number of owners was 985,000, but at the time of writing this article, this number increased to 1.17 million.
A decrease in active addresses indicates that speculation has decreased, but the price of ARB will not fall below $2. Therefore, a rapid recovery can be expected along with price declines.
Finally, it is important to note that in Arbitrum’s case, there is upside potential after the token unlocking. Therefore, investors and market analysts are monitoring these developments carefully.
