The Arbitrum network experienced its largest spike in network load to date, resulting in nearly all services going down after the much-anticipated airdrop event. As expected, the value of the ARB token took a significant hit as soon as the first sellers entered the market, with the price dropping to around $1.6 at the time of writing.
The airdrop had been eagerly awaited by investors and traders who anticipated a possible price drop for the ARB token. Many believed that the sudden influx of tokens being distributed to users would lead to an oversupply on the market, driving the token price down as holders rushed to sell their newly acquired assets.
This expectation was confirmed when the airdrop took place, and the value of the ARB token plummeted almost immediately. The sudden sell-off was the main factor behind the price drop, as a large number of participants sought to cash in on their tokens and secure profits. The decline in ARB's value showcases the inherent risks and volatility associated with airdrop events, as market participants often act in their own short-term interest rather than considering the long-term potential of the project.
Ethereum cannot breakthrough
Over the past six days, Ethereum has faced significant resistance at the $1,800 price level, unable to break through this critical threshold. Several factors may contribute to this difficulty, including the upcoming Arbitrum airdrop, regulatory pressure from the SEC and the potential resolution of the current banking crisis.
The anticipated Arbitrum airdrop has generated substantial buzz on the cryptocurrency market, attracting a new wave of investors. However, this event could also fuel volatility on the Ethereum network and create turmoil as traders and investors react to the airdrop. This uncertainty may be one reason why Ethereum is struggling to break past the $1,800 mark.
Another factor affecting Ethereum's price is the ongoing pressure from the SEC, which continues to scrutinize the cryptocurrency industry. Additional regulations and limitations are expected in the foreseeable future, creating a sense of unease among investors. This apprehension may contribute to Ethereum's difficulty in breaking through the $1,800 threshold.
Lastly, the potential resolution of the banking crisis could lead to a recovery on traditional financial markets. This improvement in the broader economic landscape may result in an outflow of investments from the cryptocurrency market, as investors regain confidence in conventional assets. This shift could be another reason for Ethereum's struggle at the $1,800 level.
Tron feels SEC's pressure
Tron's native cryptocurrency, TRX, has taken a massive hit following the announcement of a lawsuit against its founder, Justin Sun. Although Sun is no longer the CEO of Tron, his potential arrest has caused widespread concern for the entire Tron ecosystem. As a result, investors are reducing their exposure to TRX, fearing possible regulatory repercussions in the future.
The lawsuit against Justin Sun sent shockwaves through the Tron community, as Sun's influence on the project remains significant despite his departure from the position of CEO. The possibility of Sun's arrest has raised questions about the future direction of Tron and its associated projects. This uncertainty has led to panic-selling among TRX holders, causing the cryptocurrency's price to plummet.
Investors are increasingly concerned about holding TRX due to the potential legal troubles associated with the ongoing lawsuit. The fear is that any association with TRX could result in negative consequences from U.S. regulators, who have been cracking down on the cryptocurrency industry in recent years.