Arbitrum, the leading Ethereum layer-2 solution, is facing alarming problems as 97% of its holders are currently losing money. According to the latest data from IntoTheBlock, the trend shows that the majority of Arbitrum (ARB) investors are “out of the money,” indicating that their holdings are losing money.
The figures highlight the alarming situation: around 1.15 million addresses collectively hold 6.67 billion ARB, equivalent to around US$4.53 billion at current market rates.
This positions Arbitrum as a leading cryptocurrency with a market cap exceeding $1 billion, where the proportion of holders who have suffered losses significantly exceeds the proportion of holders who have made a profit.
No optimism.
Arbitrum’s fully diluted market cap is $6.75 billion, but ARB’s profit is only $2.18 billion. Much of this loss is due to investments in Arbitrum tokens, which are priced between $1.31 and $1.50 per token.
This group consists of 172,440 addresses holding 2.98 billion ARB tokens, making it the largest segment of unprofitable ARB holders. For example, the price of Arbitrum is currently around $0.67 per ARB token, with some fluctuations depending on the exchange.
Despite being the leading Ethereum L2, Arbitrum’s price performance has been weak, leading to widespread negative financial impact on its investor base. The data highlights the challenging market conditions for ARB holders, reflecting broader market turmoil driven by fear and greed.
