As an analyst with over two decades of experience in the financial markets, I have witnessed countless token unlocks and their impact on the crypto market. This week, we have two significant events to watch: the Arbitrum and ApeCoin unlocks.
Attention is likely to focus on the prices of Arbitrum and ApeCoin this week, as both platforms are scheduled to release a significant amount of tokens.
The price of ApeCoin (APE) stood at $0.756, marking a 57% increase from its lowest point in August, whereas Arbitrum (ARB) remained stationary at $0.5345 – a level it has held for the past several weeks.
Arbitrum will unlock 93 million tokens
On Monday, Sep. 16, attention will shift towards the two coins as more tokens are released, with Arbitrum unveiling an additional 93.2 million tokens, bringing the total circulating supply to over 3.52 billion.
The Arbitrum token distribution isn’t fully completed yet, as there are still some releases left due to its total supply being set at 10 billion tokens, with the final unlock scheduled for April 2027.
This unlock will happen at a time when Arbitrum’s ecosystem is going through a challenging period. Data by Nansen shows that the number of active addresses has dropped to 455,000, down from the year-to-date high of 1.50 million.
Daily deployment counts on the blockchain have decreased significantly, dropping from a peak of 32,750 this year to just 8,600 currently. Additionally, the transaction count has declined by more than 24% in the last 24 hours, reaching 1.07 billion.
It appears that Base Blockchain has surpassed Arbitrum in terms of transaction volume within the decentralized exchange sector. Over the past week, the transaction volume on Arbitrum’s DEX networks decreased by approximately 20%, reaching a total of $2.7 billion. On the other hand, Base Blockchain handled transactions worth $2.91 billion during the same period.
ApeCoin token unlock ahead
On September 17th, a release of 15.38 million ApeCoin units, initiated by Yuga Labs, is scheduled to occur. With this event, the total number of circulating ApeCoins will rise to approximately 620 million.
1) ApeCoin’s total minted amount is capped at 1 billion units, with approximately 15.3 million being made accessible every month. The full release of all coins will be completed by March 2026.
Additionally, we’re looking forward to the imminent launch of ApeChain – a layer-2 network that will offer developers an opportunity to create applications spanning various sectors such as gaming, decentralized finance, non-fungible tokens, and decentralized public infrastructure.
As a crypto investor, I’ve noticed that token unlocks can be viewed as potential downers within our community due to their dilutive nature towards existing token holdings. This is because more tokens entering the market can potentially decrease the value of each individual token held by investors. Moreover, these newly released tokens tend to flow into staking pools, thereby reducing the staking yield that we receive as investors.
The decisions made by the Federal Reserve regarding interest rates on Wednesday are expected to impact both ApeCoin and Arbitrum as well.
Economic experts predict that the bank will make its first reduction in interest rates since 2020 due to a decrease in U.S. inflation and an unemployment rate consistently over 4%. Typically, when the Federal Reserve adopts a more accommodating stance, cryptocurrencies and other risky assets tend to perform well.
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2024-09-15 16:56