Arbitrum (ARB) Price Plummets Over 20% in Recent Days: On-Chain Insights into the Contributing Addresses

By 0xGorki 09/12/23 9:39 AM

In the ever-volatile world of cryptocurrencies, the price of Arbitrum’s token, ARB, has experienced a significant drop of more than 20% over the past three days. This sharp decline has left many investors and traders wondering about the on-chain dynamics behind this downward spiral. In this report, we’ll delve into the activities of some prominent addresses that have played a role in ARB’s recent nosedive.

1. Address 0xe97 – The Whales’ Moves

One notable address, 0xe97, belonging to a cryptocurrency whale, made headlines by selling a staggering 3.8 million ARB tokens, valued at approximately $3.26 million USD, on Binance on September 11th. This sale resulted in a significant loss of around $1.3 million USD.

To add to the intrigue, this same whale had previously withdrawn approximately 17.62 million ARB tokens, worth $21 million USD, from both Binance and Gate.io back in April. They sold these tokens at an average price of $1.19 USD. As of now, this whale still holds 13.78 million ARB tokens, valued at $10.78 million USD, in their investment portfolio.

2. Address 0xDce – The Swap Enthusiast

Another intriguing case involves address 0xDce, also known as vladilena2.eth. This address carried out a swap of 2,000 ETH (approximately $3.27 million USD) to acquire 3.64 million ARB tokens at an average price of $0.9 USD. These transactions occurred via decentralized exchanges such as ParaSwap and 1inch from September 3rd to September 8th. On September 11th, the whale transferred all 3.64 million ARB tokens (valued at around $2.87 million USD) to Binance. Judging by the ARB token’s price at the time of the transfer, it appears that this whale incurred an estimated loss of approximately $300,000 USD.

Interestingly, this address seemed to have had a less-than-favorable experience trading ARB. In a prior transaction in August, they used 800 ETH (equivalent to $1.47 million USD) to acquire 1.27 million ARB tokens but later sold them at a loss of approximately $36,000 USD after holding the tokens for just three days.

3. Address 0x695 – The Deleveraging Whale

Address 0x695 made significant moves in July 2023 by withdrawing ARB tokens from Binance and depositing around 7 million ARB tokens into Aave to borrow USDC. Due to the ARB price fluctuations, this whale withdrew 5 million ARB tokens (equivalent to $3.85 million USD) from Aave and sold 4.5 million of these tokens (valued at $3.47 million USD) on Binance to repay their debt.

Currently, this whale holds a total of 6 million ARB tokens, worth $4.62 million USD. As for their Aave debt, they still collateralize 2 million ARB tokens to borrow 263,667 USDC.

4. Wintermute – The Participant

Wintermute, not unlike the aforementioned addresses, also transferred 5.29 million ARB tokens (approximately $4.08 million USD) to Binance.

5. Other Addresses – Following the Trend

In addition to the highlighted whale addresses, seven other whale addresses made ARB token sales on the morning of September 12th. According to Lookonchain, a total of 20.41 million ARB tokens were pushed onto the market, with a combined value of $16.05 million USD. In general, most of these whales sold at a loss, contributing to a total loss of approximately $8.15 million USD.

The recent price drop of ARB tokens serves as a reminder of the inherent risks in the cryptocurrency market. Whales and large investors, like those mentioned above, can significantly impact the market’s dynamics with their trades and decisions. As always, it’s crucial for investors to conduct thorough research and consider these on-chain insights when making their cryptocurrency investment choices. The crypto market remains highly volatile, and understanding the actions of influential players is key to navigating these turbulent waters.

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