Token inflation is an extremely important factor affecting price, and this week a popular altcoin will undergo a significant unlock event. We have seen in the past that such large unlock events have led to significant negative outcomes on prices. So, what are the possible price targets? Which altcoin will unlock when?
Arbitrum (ARB) Token Unlock
On Saturday, March 16, Arbitrum (ARB) will unlock tokens worth approximately $2.1 billion, representing about 76% of its circulating supply. With 1.11 billion ARB tokens entering circulation, price fluctuations are likely. Of the new supply, 675 million tokens, equivalent to $1.44 billion, will go to the team and advisors. The remaining $937 million will be distributed to investors.
Moreover, as you can see in the table above, the circulating supply will continue to grow rapidly after this unlock event. By the end of 2024, the total circulating supply will reach 3.7 billion.
Considering the current circulating supply is 1.275 billion, the supply will triple in 9 months. If the unit price remains the same, this means the market value will have to climb from $2.6 billion to $7.5 billion. But can ARB’s market value exceed $7 billion as the supply rapidly increases? Time will tell, and how the Arbitrum team can stimulate demand faster than supply growth is a matter of curiosity.
ARB Coin Price Prediction
Arbitrum (ARB), the largest layer2 solution in terms of total value locked on the network, is trading at $2.07 as of the time this article was prepared. The altcoin, which has not been able to sustain above $2.15, is now gathering strength for a bigger historical peak. With BTC above $69,000, the price is holding above $2.
The potential impact of increasing inflation on price is downward. If there is also a softening in the general market sentiment, ARB Coin could significantly diverge negatively during this period. In the event of a pullback, the price can retreat to levels of $1.52 and $1.06 with closures below $1.73.
Of course, nothing is certain in cryptocurrencies, and Arbitrum could continue its rise with a significant move that makes the new supply entering circulation forgettable. Or it could turn the process in its favor with a last-minute unlock postponement like DYDX did.
