On July 16, 92.65 million ARBs are expected to be put into circulation. The release is valued at approximately $8.53 million and represents 1.65% of the currently released token supply.
The unlocked tokens will be distributed between two main groups. Approximately 56.13 million ARB will be paid to the Arbitrum team, future team members and advisors. The remaining 36.52 million ARB will be allocated to investors.
Here it is worth noting that unlocking tokens does not always lead to an immediate sale. However, the new offer may cause prices to change in the short term, depending on how recipients manage their assets.
AMBCrypto previously reported that 10% of fees collected by Robinhood Chain and other Arbitrum Layer-2 networks will be directed to the Arbitrum ecosystem. This development is separate from token unlocking, but the ecosystem’s growing source of value can also be factored into ARB’s long-term outlook.
How is the price of ARB evolving?
Despite the impending event, ARB has recovered in the charts in recent sessions.
In fact, after falling towards the $0.07 range, the altcoin returned above $0.09. Maybe there was some buying interest before the unlock.
The RSI was near 63 at press time, meaning buyers had the upper hand without entering overbought territory. The MACD also turned positive, which supported the rise.
Unlocking could test this recovery. The future depends on whether buying demand remains strong enough to absorb the additional tokens.
Hope for derivatives traders?
Finally, ARB’s aggregate open interest increased to approximately $60.9 million. Many traders appeared to hold active positions in the market.
At the same time, the average funding rate was also positive at 0.0083%. Long positions appeared to outweigh short positions, with traders widely expecting further upside on the charts.
What’s interesting is that this long positioning can also increase volatility if the market moves in the opposite direction.
Final summary
- Arbitrum will release 92.65 million ARB on July 16.
- At the time of writing, ARB price had moved back above $0.09, with traders also optimistic.
