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Arbitrum Will Unlock $1.2B ARB in March 2024: Token Unlocks
On March 16, the layer 2 scaling solution will unlock a massive 1.11B ARB tokens.
Updated Aug 16, 2023, 6:12 a.m. Published Aug 16, 2023, 6:12 a.m.
Ethereum layer 2 scaling solution Arbitrum will release over $1 billion worth of ARB tokens in March next year, kicking off a four-year period of staggered unfreezing of its native digital asset, according to data source Token Unlocks.
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. The amount to be released equates to 87% of the token's circulating supply of 1.275 billion. At press time, over 5 billion ARB tokens remain locked.
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Unlocks are staggered releases of cryptocurrencies that had been frozen to prevent early investors or project team members from selling in large numbers. The Cliff unlock method allows for unfreezing a certain number of tokens immediately after a predetermined period, after which unfreezing happens in a linear schedule.
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Following the March 16 release, Arbitrum will continue to unfreeze a certain amount of tokens every four weeks for four years, Token Unlocks noted in a tweet.
📅 Mark your calendars
— Token Unlocks (@Token_Unlocks) August 16, 2023
$1.1 billion in $ARB unlocks are coming ⏳
On March 16th, 2024, get ready for a massive cliff unlock as the Team and Investors unlock their tokens, totaling a staggering $1.26 billion. 🔥
But that's not all! Starting from that day, every 16th of the… pic.twitter.com/Ayv4bKXmty
Unlocks 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, according to data source TradingView.
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