What Ethereum whales are doing ahead of Arbitrum's ARB token airdrop
- Arbitrum DEX trade volume surged 32%, surpassing BNBChain and second only to Ethereum, ahead of ARB token airdrop on March 23.
- Experts predict liquidity injection and increase in trade volume in Arbitrum ecosystem projects with the upcoming airdrop.
- Ethereum whales and large wallet investors in the crypto ecosystem have increased their activity close to the ARB airdrop.
Arbitrum Decentralized Exchange’s (DEX) trade volume increased by 32% to $4.34 billion. The DEX’s trade volume hit a new two-week high, surpassing BNBChain and second only to Ethereum.
Large wallet investors in the crypto ecosystem increased their activity close to ARB token airdrop scheduled for March 23. Experts predict a massive liquidity injection in crypto from ARB’s airdrop.
Also read: Ethereum layer-2 Arbitrum’s most awaited airdrop of 2023 is expected on March 23
Ethereum whale transaction volume surges 120% ahead of Arbitrum airdrop
Based on data from WhaleStats, Ethereum whales increased their transaction volume in response to the Arbitrum ARB token airdrop announcement. ARB airdrop is scheduled for March 23. ETH whale transaction volume climbed from $185.7 million to $408.8 million, a 120% increase on March 19.
ETH whale transaction volume
A spike in whale activity is consistent with the rising interest garnered by ARB airdrop in the crypto community. The following chart shows the weekly volume in ETH, traded by the largest whales in the Arbitrum ecosystem.
Arbitrum weekly whale volume
Arbitrum DEX trade volume explodes, second only to Ethereum
Based on data from DeFi tracker Llama Fi, over the past week, Arbitrum DEX trading volume increased by 32% to 4.34 billion US dollars. The DEX trading volume hit a new high for two consecutive weeks, surpassing BNBChain and second only to Ethereum.
The spike in trade volume on Arbitrum DEX is consistent with the rising anticipation among traders ahead of the long awaited ARB token airdrop.
Here’s why experts believe ARB token airdrop will inject liquidity in crypto
Miles Deutscher, an on-chain analyst on CryptoTwitter believes the upcoming ARB token airdrop will act as a form of stimulus for the ecosystem. ARB’s incentives could contribute to rising Arbitrum yields and have a positive flow-on effect for the broader crypto market.
3 major effects of the upcoming $ARB airdrop:
— Miles Deutscher (@milesdeutscher) March 19, 2023
• Will act as a form of stimulus for the Arbitrum ecosystem
• Arbitrum yields will increase due to ARB incentives
• Will have positive flow-on effects for the broader crypto market, as people can access additional liquidity
Several small cap projects in the Arbitrum ecosystem have seen an increase in activity, however experts argue that the narrative is fueled by the anticipation of the airdrop and it may not be the best time to scoop up small cap tokens.
ATTENTION!
— korpi (@korpi87) March 18, 2023
Many tokens in the Arbitrum ecosystem has pumped a lot in the recent days.
My general advice is not to fomo in.
It's better to wait for pullbacks, unless you believe a protocol is still severely undervalued even after the pump.
Not financial advice :)
For details of the airdrop, check this out.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
