Ethereum-based Layer-2 (L2) scaling protocol Arbitrum (ARB) is set to unlock more than 1.1 billion tokens in line with its vesting schedule. According to an update from the crypto analytics platform Messari, Arbitrum is set to unlock exactly 1,111,750,000 ARB or 11.2% of its total allocation to vesting schedules at the Token Generation Event (TGE).
Per the breakdown of the total tokens set to be unlocked, the Offchain Labs team and advisors will get 673,500,000 ARB tokens worth approximately 6.74% of the total tokens allocated at TGE. Investors associated with Offchain Labs will get the remaining 438,250,000 ARB tokens, accounting for 3.38% of the total tokens allocated at TGE.
The Arbitrum protocol uses the Optimistic Rollups technology as its Ethereum scaling tool. Thus far, Arbitrum has exerted unique dominance in the market per DEX volume and total value locked (TVL) of $4.087 billion. Per the current time projection, the 1.11 billion ARB token unlock is set to be released in less than three hours, and it accounts for 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 release will increase the circulating supply of the coin in question and might somewhat dilute its valuation in relation to price.
ARB might also stand the risk of sell-off from the parties that might be beneficiaries of the token allocation. Should this sell-off be ushered in, it might trigger a massive dump in the price of ARB.
While this market reality looms, the price of ARB is currently in the green, up by 1.7% to $1.90 in the past 24 hours. The price of the token soared from a low of $1.81 to an intraday high of $1.94 to show its market-resilient price action.