Through the bear market, Arbitrum (ARB) was one of the tokens that managed to hold a significant amount of its all-time high value. In the same vein, the digital asset is one of the few tokens currently flashing a green bullish flag, and the build-up has been picking up as a result.
High rates of whale accumulation in the ARB
Transactions on the Arbitrum blockchain on Thursday, July 20, indicate massive backlogs among large investors. These transactions were flagged by an on-chain data tracker, which dates back to July 17 when the accumulation trend seemed to start.
On Monday, Lookonchain mentioned Three deals carried 3.76 million ARB worth $5 million at the time from the Binance platform to the wallets of known whales. While these transactions were significant, they did not stop there.
The next day, July 18, the tracker observer Another deal carries 4 million ARB. The source of the transaction was the same, the coins worth $5 million at the time were moved from Binance to a private wallet.
The latest accumulation of whales It happened On Wednesday, July 19th, with the largest ARB draw of the group. This time, a whale known as “0x6950” withdrew 4.6 million ARB worth $5.84 million at the time of the transaction, from Binance.
Whale pulled out” 0x6950 4.6M $ARB ($5.84 million) from # Finance again now.
Whale pulled out a total of 9 million $ARB ($11.4 million) from # Finance in the past two days.https://t.co/E9GCmJ7ftc pic.twitter.com/FNI1gBbxrd
– Lookonchain (lookonchain) July 19, 2023
All of these transactions point to a steady accumulation trend among these large holders, which could indicate that they expect a price recovery soon. Their pullbacks also reduced the amount of selling pressure on the digital asset and this could also provide support for any rally going forward.
Arbitrum continues to dominate the second layer blockchain
Arbitrum has seen a lot of success in the market and this is contributing to the bullishness around the original ARB token. Arbitrum offline It boasts the largest Total Value Locked (TVL) of all the Ethereum Layer 2 blockchainsincluding polygon and optimism.
While Polygon and Optimism TVLs are at $1.027 billion and $926 million respectively, Arbitrum Network’s TVL is at $2.68 billion. This number makes L2 is Fourth largest TVL company across all blockchainsbehind heavy hitters like Ethereum, Tron, and BSC.
With Arbitrum controlling a large portion of L2 TVL, expectations are that its native token will also rise alongside it. Currently, ARB is trading at $1.29 with a price gain of 3.33% in the last 24 hours. However, the price could easily rally towards $1.5 if whale accumulation continues and selling pressure continues to decrease.
ARB price retests $1.3 resistance | Source: ARBUSD on Tradingview.com