Arbitrum [ARB] AirDrop grabs attention: Decoding the token’s reaction

• Arbitrum launched over 12% of its ARB provide via an AirDrop. 
• Arbiturm continued to outperform its rivals, however ARB fell sufferer to a rip-off.

Arbitrum [ARB] accomplished its newest AirDrop on 23 March, growing the community’s newly launched token’s circulating provide. As per Delphi Digital’s Twitter thread, Arbitrum AirDropped over 12% of its provide, which accounted for 1.275 billion ARB tokens.

1/ In lower than 24 hours, @arbitrum might inject billions of {dollars} into the crypto ecosystem:

🔹625,000 wallets are eligible
🔹Transactions + TVL are in any respect time highs
🔹It is closest competitor is valued at $11B

Arbitrum’s airdrop is a case research in how one can decentralize: 🧵⬇️ pic.twitter.com/7iEhfNSGpC

— Delphi Digital (@Delphi_Digital) March 22, 2023

Lifelike or not, right here’s ARB market cap in BTC’s phrases

ARB token allocation 

Because the tokens have been AirDropped, they have been then allotted to others in numerous ratios. The bulk share, which accounted for 43%, was allotted to the DAO Treasury, which was adopted by 27% allotted to the workforce and advisors. ARBs have been additionally despatched to Arbitrum DAOs, particular person wallets, and buyers.

2/ Arbitrum is decentralizing by launching its governance token $ARB to transition in the direction of self-executing DAO governance.

12.75% of its provide, or 1.275 billion tokens shall be distributed to Arbitrum neighborhood members and DAOs within the Arbitrum ecosystem. pic.twitter.com/FqVkx5FQ7H

— Delphi Digital (@Delphi_Digital) March 22, 2023

Arbitrum outperforming its rivals? 

Delphi Digital’s tweet additionally talked about the state of Arbitrum in comparison with its rivals, equivalent to GMX and Optimism [OP]. GMX has processed over $93 billion in quantity since its inception on Arbitrum and has lately hit all-time highs in TVL.

Nonetheless, for GMX, the TVL development got here to a halt over the previous couple of days as DeFiLlama’s knowledge revealed that the graph moved sideways. Whereas GMX’s gaining spree stopped, the other was true for Arbitrum, as its TVL gained upward momentum.

Arbiturm additionally outperformed Optimism in a number of key metrics, that too by a big margin. 

6/ Arbitrum’s closest competitor is Optimism, an L2 that additionally settles transactions to Ethereum. $OP is at present valued at $11B FDV.

If we have been to make use of Optimism as a benchmark for Arbitrum, we see Arbitrum leads in practically all metrics: pic.twitter.com/ZMGbjeUXmK

— Delphi Digital (@Delphi_Digital) March 22, 2023

How a lot are 1,10,100 ARBs price at present?

The present state of ARB

As ARB tokens entered circulation, their worth dropped by an astounding 88%. The hype round ARB and its large worth decline may need performed a job in making the token pattern on CoinMarketCap. At press time, ARB was valued at $1.47 with a market capitalization of over $1.8 billion, making it the thirty fourth largest token.

Nonetheless, regardless of the drop in worth, buyers’ and whales’ curiosity in ARB remained unaffected. Lookonchain’s knowledge revealed the listing of the highest 5 consumers of ARB. A whale purchased 4.94 million ARB with 3,700 ETH, which is price over $6.7 million. 

Are there whales shopping for $ARB?

1.🧵
Share the highest 5 consumers of $ARB with you.

A whale purchased 4.94M $ARB with 3,700 $ETH ($6.79M)! pic.twitter.com/lSdVzenlxp

— Lookonchain (@lookonchain) March 24, 2023

ARB’s market maker, Wintermute Buying and selling, additionally acquired 40 million tokens and transferred a small quantity of ARB to exchanges for testing. Traders’ curiosity was additionally confirmed by checking Santiment’s chart, which confirmed an enormous hike within the token’s quantity.

Nonetheless, constructive sentiments round ARB declined closely, which may trigger bother within the coming days.

Supply: Santiment

Traders ought to be cautious

Because the hype round ARB continued to develop, fraud concerning the token has already begun. A scammer created faux tokens of the identical title as ARB and generated $24,480 in quantity on Uniswap [UNI]. Preliminary reviews revealed that the faux ETH/ARB had over 95 million faux ARB and over 400 WETH on Uniswap V3. Subsequently, warning is suggested. 

Please verify whether or not the contract handle is appropriate earlier than buying and selling $ARB!

A scammer created faux tokens of the identical title as $ARB and generated $24.48k in quantity on #Uniswap.

The proper handle of $ARB: 0x912CE59144191C1204E64559FE8253a0e49E6548https://t.co/qvmcEz82Oh pic.twitter.com/47qvaePkXQ

— Lookonchain (@lookonchain) March 23, 2023