This cryptocurrency will unlock $65 million worth of tokens this week

Arbitrum (ARB), one of the most popular second layers of Ethereum (ETH), will unlock over $65 million worth of tokens on July 16. This will increase the circulating supply of Arbitrum’s native tokens by nearly 3% and could impact the price and create selling pressure.

Finbold received this data from TokenUnlocksApp on July 13, highlighting cryptocurrency Cliffs unlocks for the next seven days. Arbitrum, in particular, stands out as the largest unlock in US dollar notional value, accounting for 37% of the $174.88 million.

Specifically, the team will enter into vesting contracts with 56.13 million ARB worth $39.39 million. Meanwhile, retail investors will be able to sell 36.52 million ARB worth $25.63 million, which will mean profit for retail investors. At the time of writing, Arbitrum is trading at $0.69 per token, which represents a worrying downtrend since the beginning of the year.

Arbitrum’s historical activations and sales activities

Arbitrum vesting contracts release new tokens every month, as part of ARB’s release schedule and inflation model. Finbold has been reporting on these releases, and it’s notable to observe how the notional value has decreased over time.

Interestingly, the most inflation occurred in March, when 1.11 billion ARB were released, which was then valued at $2.06 billion and worth an average of $1.85 per token.

In April, the recurring monthly unlocks began, releasing the 92.65 million ARB from the monthly schedule. At that time, the unlock had a notional value of $105.62 million at $1.14 per token. This represented a 38% decrease in the Arbitrum price compared to the previous month.

Later the following month, another sell-off of 92.65 million ARB worth $92.44 million occurred. Arbitrum recorded losses of around 12% in April and 46% from March to May. Finally, in June, Arbitrum’s unlocked security was worth $85.37 million, losing 7.6% MoM and piling up even larger losses from previous months.

These token unlocks are a warning about the economic impact of supply inflation and sell-offs in cryptocurrencies, and underscore the importance of crypto investors and traders studying the underlying fundamentals of a cryptocurrency before deploying capital.

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