How does Arbitrum [ARB] typically react after an unlock?

September 19, 2023

By Aniket Verma

Realistic or not, here’s ARB’s market cap in BTC terms

• ARB appreciated by 3% on the first day of the unlock, followed by a long downtrend

• The upcoming cliff unlock next year could be a big challenge for ARB

Ever since its launch in March earlier this year, Arbitrum’s [ARB] tokenomics have been a source of significant interest in the crypto-space.

The most notable has been the token unlock feature, which involves a staggered release of a fixed number of tokens at predetermined time intervals. Thanks to the fact that these events add inflationary pressure and act as bearish catalysts for ARB, experts and traders actively monitor their schedule.

ARB fluctuates after unlocks

Token analytics firm Token Unlocks took to social platform X to sketch a price impact analysis of ARB in the aftermath of an unlock.

It was observed that ARB appreciated by 3% on the first day of the unlocks, as shown below. Then, a long three-week downtrend ensued, one which caused the price to dip by 21%.

Source: Token Unlocks

However, 25 days after the unlock, the prices started to recover dramatically, rising by nearly 19% from the unlock day. A roller coaster, ain’t it?

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