Token Unlocks, a data source, has reported that Ethereum layer 2 scaling solution Arbitrum will release over $1 billion worth of ARB tokens in March 2021. On March 16, the protocol designed to offer scalable and low-cost smart contract capabilities will cliff unlock 1.11 billion ARB tokens worth $1.24 billion at the going market rate of $1.12. This amount equates to 87% of the token’s circulating supply of 1.275 billion. After the initial release, Arbitrum will continue to unfreeze a certain amount of tokens every four weeks for four years.
Unlocks are a way to free up liquidity and are considered bearish catalysts for the cryptocurrency’s price. A study by analytics firm The Tie shows that unlocks representing more than 100% of the average daily trading volume tend to weigh over the token’s price. As of writing, ARB changed hands at $1.12, down 4% for the month.
Quotes: On March 16, the protocol designed to offer scalable and low-cost smart contract capabilities will ‘cliff unlock’ 1.11 billion ARB tokens worth $1.24 billion at the going market rate of $1.12 and Unlocks are a way to free up liquidity and are considered bearish catalysts for the cryptocurrency’s price.