- ARB price is in a downward trend as institutions like Mandala Capital and CAP Finance shed their Arbitrum token holdings.
- Institutional investors are depositing their ARB token holdings in centralized crypto exchanges.
- ARB price declined nearly 10% over the past week as BASE protocol takes the lead among Layer 2 chains.
Arbitrum is one of the largest Layer 2 chains in the Ethereum ecosystem and the token’s price has been in a downtrend since mid-April 2023. Institutional investors have transferred their ARB tokens to centralized exchanges, gearing up to shed their holdings.
Also read: XRP price rally to $0.60 likely with recovery fueled by developments in SEC vs Ripple lawsuit
ARB price continues to bleed as institutions shed their tokens
Arbitrum (ARB), an Ethereum Layer 2 scaling solution token, is in a downward trend. The factors fueling ARB’s decline range from Coinbase BASE’s rising popularity to institutional investors’ losing interest in the token.
Arbitrum is facing intense competition from Coinbase Layer 2 BASE, a blockchain that was launched in the second week of August. Since its mainnet launch, BASE’s revenue has exceeded that of Arbitrum and the cumulative volume of daily transactions on BASE left competitors ARB and Optimism (OP) to bite the dust. Find out more about that here.
ARB price slipped from its April 18 peak of $1.81 to $1.00 at the time of writing. The Layer 2 token’s price is in a consistent decline. Over the past week, ARB price yielded nearly 10% losses as BASE protocol takes the lead.
On-chain intelligence tracker, SpotOnChain, shared details of Mandala Capital and CAP Finance’s ARB transfers and sales.
Institutions appear to be selling $ARB as $ARB price has been down by ~20% over the past month.
— Spot On Chain (@spotonchain) August 21, 2023
1. Mandala Capital deposited 3.6M $ARB to #OKX at $1.017 on avg ($3.67M) over the past 3 hrs.
2. CAP Finance sold 1M $ARB for 1.02M $USDC at $1.02 on avg 18 hrs ago.
Details pic.twitter.com/4Dtrd3s0g6
Mandala Capital deposited 3.6 million ARB tokens to OKX, a centralized exchange. CAP Finance sold a million ARB tokens at an average price of $1.02.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC remains calm before a storm
Bitcoin price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as investors absorb the tariff announcements.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
Ethereum Price Forecast: Whales increase buying pressure as developers set April 30 for Pectra mainnet upgrade
Ethereum developers tentatively scheduled the Pectra mainnet upgrade for April 30 in the latest ACDC call. Whales have stepped up their buying pressure in hopes of a price uptick upon Pectra going live on mainnet.
BTC stabilizes while ETH and XRP show weakness
Bitcoin price stabilizes at around $87,000 on Friday, as its RSI indicates indecisiveness among traders. However, Ethereum and Ripple show signs of weakness as they face resistance around their key levels and face a pullback this week.
Bitcoin: BTC remains calm before a storm
Bitcoin (BTC) price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.