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Crypto Whales Cash in on Arbitrum’s ($ARB) Meteoric Rise Amid Ethereum Scaling Solution’s Success

Two large cryptocurrency investors recently liquidated substantial stakes in Arbitrum’s native token, $ARB, after the cryptocurrency’s price was airdropped to investors and its value increased by more than 250%.

According to Lookonchain statistics, one of the whales selling tokens was the largest purchase of ARB on its first day of listing and has already transferred all of its 9.94 million ARB tokens, worth around $17 million, to the cryptocurrency market Binance.

Another investor in the 33rd-ranked digital asset transferred their entire ARB holdings, worth at $18 million, to Binance in a separate transaction. Lookonchain said the investor paid $13.55 million for the 11 million ARB, with an average purchase price of $1.24. They stand to profit $4.54 million by selling at $1.64, which was ARB’s price at the time of the transaction, resulting in a 33% return on investment (ROI).

ARB has subsequently risen to $1.76 per token, implying that the whale could have made up to $8 million on the trade if they maintained the assets in their Binance wallets for a few more hours.

Arbitrum ranks fourth among all blockchain networks in terms of total value locked (TVL), with $2.31 billion in digital assets locked on its smart contracts, according to statistics from decentralized finance tracker DeFi Llama.

With $31.8 billion, $5.5 billion, and $5.1 billion, respectively, Ethereum ($ETH), Tron ($TRX), and $BNB Chain dominate the rankings. A blockchain’s TVL is a critical measure representing the total capital held within its smart contracts.

According to CryptoGlobe, after listing ARB’s token last month, renowned US-based cryptocurrency exchange Coinbase assisted it in gaining traction.  Arbitrum, an Ethereum Layer 2 scaling solution developed by Offchain Labs, is a hopeful rollup that offers trustless security, Ethereum compatibility, scalability, and low costs.

 

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