Arbitrum (ARB), a prominent cryptocurrency, is about to see its price decrease significantly as it gets ready for its April 16 coin unlock. Token unlocks, like this upcoming event, often make the market more volatile because no one comprehends what will happen afterward.
TokenUnlock data indicates that on April 16, about 3.265 million Arbitrum tokens will be released. This is equal to 3.49 percent of the total number of Arbitrum tokens in circulation.
Out of these, 56.13 million tokens, worth $65.10 million, will be given to the project’s team members, future team members, and mentors. The other 36.52 million tokens, worth $42.36 million, will be given to investors.
Arbitrum’s Token Unlock Impact
In the past, when recipients got access to new tokens, they sold an abundance of them, which pushed the price of the tokens down. So, once these tokens are used, Arbitrum’s market value may go through a similar process. This has happened before; during Arbitrum’s last token unlock event on March 16, the price declined significantly.
CoinMarketCap data shows that the March token unlock had an effect on the price of Arbitrum, which fell from over $2 to $1.8. It’s worth noting, though, that the upcoming token unlock will not even come close to the event held last month, when 1.11 billion Arbitrum tokens, or 41.89% of the total circulating stock, were released into the market.
Because of this, any subsequent market sell-offs might not have as significant of an effect as they did before. Even so, Arbitrum could still fall below the important $1 support level, especially since its price is currently close to this level.
Along with Arbitrum, Axie Infinity (AXS) is another cryptocurrency that is about to get an enormous token unlock this week. AXS tokens worth $76.96 million, or 7.6% of the total supply, will be released on April 17. Some of these tokens will be given to staking awards, the team, and the ecosystem fund.
Apecoin (APE) also has a chance of breaking through the $1 mark when its tokens are unlocked on April 17. Apecoin tokens worth about $18.57 million, or 2.48 percent of the total number, are set to be released and will mostly be given to the founder of Yuga Labs.
A significant decrease in the price of Apecoin could make people even less optimistic about the Yuga Labs environment. This is especially true since the Bored Ape NFT has already dropped 90% from its high point.
