The Ethereum-based Arbitrum Layer 2 (L2) scaling protocol is set to unlock over 1.1 billion tokens according to its vesting schedule. According to a update from cryptanalysis platform Messari, Arbitrum will unlock exactly 1,111,750,000 ARB or 11.2% of its total allocation for vesting schedules at the Token Generation Event (TGE).
The Ethereum-based Arbitrum Layer 2 (L2) scaling protocol is set to unlock over 1.1 billion tokens according to its vesting schedule. According to a update from cryptanalysis platform Messari, Arbitrum will unlock exactly 1,111,750,000 ARB or 11.2% of its total allocation for vesting schedules at the Token Generation Event (TGE).
Based on the breakdown of the total tokens to be unlocked, the Offchain Labs team and advisors will earn 673,500,000 ARB tokens worth approximately 6.74% of the total tokens allocated in TGE. Investors associated with Offchain Labs will get the remaining 438,250,000 ARB tokens, representing 3.38% of the total tokens allocated in TGE.
The Arbitrum protocol uses Optimistic Rollups technology as an Ethereum scaling tool. Until now, Arbitrum has exerted unique dominance in the market by DEX volume and total value locked (TVL) of $4,087 million. According to the current time projection, the unlocking of 1.11 billion ARB tokens will be launched in less than three hours and represents 76.62% of the circulating supply worth $2.33 billion.
Impact of ARB token unlock on price
Token unlocking is not an uncommon event in the crypto ecosystem. The launch will increase the circulating supply of the coin in question and could somewhat dilute its valuation relative to the price.
ARB could also risk liquidation by parties that could be beneficiaries of the token allocation. If this liquidation were to occur, it could cause a massive drop in the ARB price.
While this market reality looms, ARB price is currently in the green, up 1.7% to $1.90 in the last 24 hours. The token price soared from a low of $1.81 to an intraday high of $1.94 to show its market-resistant price action.
