ARB investors may fret despite this projection around Arbitrum’s…
- ARB’s circulating supply will more than double in the next 365 days. To be precise, it will go up by more than 110%.
- The token was down by over 7% last week, and metrics looked bearish.
Only a few months have passed since Arbitrum’s [ARB] mainnet launch, and the network has reached new heights. As per recent data, Arbitrum was only behind zkSync Era in terms of daily transactions, followed by Optimism [OP].
Token Unlocks latest tweet also highlighted a few of the network’s achievements since its inception, which were encouraging. The tweet also mentioned how ARB’s circulating supply will increase substantially over the coming year.
Read Arbitrum’s [ARB] Price Prediction 2023-24
Arbitrum’s achievements and a look into the future
Ethereum Daily, a popular Twitter handle that talks about developments in the ecosystem, revealed that Arbitrum was second only to zkSync Era in terms of daily transactions. This was a huge achievement, reflecting how the adoption of the network has increased over the past few months.
— Ethereum Daily (@ETH_Daily) July 23, 2023
If that was not enough, Token Unlocks’ latest tweet highlighted how far Arbitrum has come since its launch in March 2023. As per the tweet, in just five months, ARB holders reached 611,000 once again proving how the community is adopting the token.
After a retrospection, it is also important to understand how ARB’ might look. Token Unlocks’ tweet also revealed that within the next year, the token’s circulating supply will increase substantially. Its circulating supply will emit more than double in the next 365 days.
— Token Unlocks (@Token_Unlocks) July 23, 2023
To be precise, it will go up by more than 110%, which can be considered as a substantial amount. Considering this and ARB’s past, the number of ARB holders might skyrocket.
As per the tweet, with this holder growth rate, we might see 2.07 million ARB holders YoY, which is a 330% increase. However, token unlocks are generally followed by a price downtrend as they increase circulating supply, disrupting the supply/demand chain.
Realistic or not, here’s ARB market cap in BTC‘s terms
ARB’s state of affairs
At the time of writing, the token’s price was under a bearish influence. According to CoinMarketCap, ARB’s price plummeted by more than 7% in the last seven days. At press time, it was trading at $1.20 with a market capitalization of over $1.5 billion.
A look at the token’s on-chain revealed that, in the coming days, investors should brace for some turbulence. Whale activity around the token declined last week. Its Market Value to Realized Value (MVRV) Ratio also plummeted, which was bearish.
Additionally, Arbitrum’s one-week price volatility dropped, decreasing the chances of a sudden uptrend. However, despite the price drop, it was interesting to note that ARB’s total amount of holders went up last week.