Arbitrum Token Price Hits All-Time Low as Whales Sell Millions of ARB Tokens
The price of Arbitrum (ARB), a native token of the decentralized finance (DeFi) platform, has reached a new historical low of $0.747217. This significant drop comes as several whale investors have been selling off their ARB tokens, leading to increased downward pressure on the token’s value.
Whales Part With Millions Of ARB Token In Selling Spree
Arbitrum’s recent price decline can be attributed to the increased market activity of whale investors. Recently, three whales transferred a total of 10.23 million ARB tokens, worth approximately $8 million, to Binance for sale. These whales sold their tokens at prices ranging from $0.77 to $0.83 per token, resulting in a significant decrease in value for ARB.
Furthermore, a Lookonchain report revealed that in the last 30 hours, seven whales dumped a total of 20.41 million ARB tokens, with a combined value of around $16.05 million. This selling spree by whales has contributed to a total loss of $8.15 million.
Decreased Activity on the Arbitrum Network
In addition to the whale selling activity, the decline in the total value locked (TVL) on the Arbitrum network has also played a role in the downward price trend of ARB. Over the past four months, the TVL on Arbitrum has seen a decline of more than 35%, reaching its lowest point since March.
This loss of investor confidence, indicated by the shrinking TVL, may discourage new participants from joining the network and investing in ARB.
Governance Proposals Impacting Price Decline
Moreover, recent governance proposals from PlutusDAO have introduced potential changes that could further impact the price of ARB. One proposal aims to return tokens from the DAO treasury to ARB holders, potentially leading to the release of up to 2% of the total token supply annually. This proposal is viewed by some investors as inflationary and is likely to exert downward pressure on the price of ARB.
Overall, the current decline in ARB’s price can be attributed to various factors, including increased selling by whale investors, decreased network activity, and uncertain governance mechanisms.
According to CoinGecko data, the current value of ARB is $0.781039.
Image Source: SoFi
Chart Source: TradingView
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