Image default

Binance Lists Ethereum L2 Arbitrum Token Ahead of Airdrop — But ARB Crash Fears Persist

Key Takeaways:

  • Arbitrum token ARB gains listing on Binance.
  • The Airdrop will take place on March 23.
  • As a result, Arbitrum DEX trading volumes soar, as well as the total value locked.
Binance Lists Ethereum L2 Token Arbitrum Ahead of Airdrop — But ARB Crash Fears Persist
Read on Read on Google NewsGoogle News

YEREVAN ( – Crypto exchange Binance announced it would list Arbitrum token ARB on March 20. According to the announcement, the exchange plans to launch the spot trading pairs on March 23 at 17:00 UTC.

Users can start depositing ARB in preparation for trading once the official token claiming is live at the Ethereum blockheight of 16,890,400, estimated at around 2023-03-23 12:30 (UTC). Withdrawals for ARB are tentatively set to open at 2023-03-24 17:00 (UTC).

reported Binance.

The announcement came ahead of the ARB token Airdrop scheduled for March 23. In short, Arbitrum is an optimistic rollup solution that moves network activity off the Ethereum mainnet to improve efficiency.

Arbitrum token ARB distribution

ARB is an ERC-20 token, which would serve as the Arbitrum One rollup chain governance token.

At the time of the Arbitrum airdrop, the token would have an initial supply of 10 billion ARB tokens. While the Arbitrum foundation has not mentioned the token’s expected price at launch, it provided further details on the token distribution.

Also read: Ethereum Underperforms Bitcoin as Banking Crisis Deepens — How to Trade ETH/BTC in March?

Individual user addresses would get 11.62% or 1.162 billion Arbitrum tokens. In comparison, over 44% of the 10 billion ARB tokens would go to investors, the Offchain Labs team, and advisors, the company behind Arbitrum.

Meanwhile, it is important to note that some tokens don’t perform well after Airdrops. Therefore, if most recipients decide to sell the token after the Airdrop, the value can drop rapidly.

Will the Airdrop hurt the Arbitrum Token Performance?

The “buy the rumor, sell the news” phenomenon often pumps hyped-up crypto tokens in price, which collapses right after the Airdrop.

For example, when the Internet Computer Token (ICP) first hit the market in May 2021, the price per token peaked at $2,800. However, once traders decided to unload their ICP at a pumped-up price, the value sharply declined to $380 and has stayed below the said level ever since.

Stellar (XLM) token, noted as one of the largest crypto Airdrops at the time, hit the market at approximately $0.3 on May 31, 2020. However, the token price nearly halved the following month and hit the local bottom of $0.17 on June 28.

Regarding crypto Airdrops, early investor loyalty is not a given. Thus, ARB price could decline in the days and weeks following the Airdrop. However, the future performance could be best determined by the token’s utility and demand. As of March 21, trading volumes on Arbitrum soared.

Arbitrum DEX trading volumes soar

Arbitrum dominates the L2 market, accounting for 56% of the market share in total value locked (TVL). Meanwhile, as of March 20, the Arbitrum decentralized exchanges (DEX) trading volumes increased by 32% to $4.34 billion.

 Also read: Bitcoin price move above $27K is a dead cat bounce! 3 reasons why.

According to DeFi Llama, the five largest DEXs running on Arbitrum they reported double-digit increases in their TVL the previous week.

DEX TVL rankings. Source: Defi Llama
DEX TVL rankings. Source: Defi Llama

Starting March 13, the Balancer exchange on Arbitrum saw a 73% weekly increase in TVL, reaching $70 million, while Uniswap locked 25% more TVL, reaching $184 million.

Arbitrum TVL stood at $1.8 billion on March 20, while the platform’s market dominance rose 50% year-to-date and stood at 3.8%.

Arbitrum TVL. Source: Defi Llama

The post Binance Lists Ethereum L2 Arbitrum Token Ahead of Airdrop — But ARB Crash Fears Persist appeared first on CoinChapter.

Source link

Related posts

Anticipation of G20 Summit outcome keeps bulls, bears fighting

Marine Savard

Bitcoin Critic Warren Buffett Slams Crypto Again, Calls It A ‘Gambling Token’

Marine Savard

BTC Price Prediction – Is Bitcoin Heading Back to $17k Today?

Marine Savard

Michael Saylor Says FTX Crash Could Benefit Bitcoin

Marine Savard

Raydium Prices Shot 30% 2 Weeks Ago Before Plunging, What Happened?

Marine Savard

Bitcoin developers clash: Has BRC-20 tokens’ time run out?

Marine Savard

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More