Crypto whales have gone on a significant accumulation spree, an indicator that could push ARB prices higher. Virtual currencies are down this week, with BTC losing 2.33% to $101,546.17.
Yesterday, the US monetary authority announced a reduction of the lending rate, a third successive decrease this year. Historically, decreases in lending rates are a boost for the financial market, including crypto assets.
Senior crypto trader Ali Martinez today shared data showing that whales have bought over 40 million ARB tokens over the past week. This shows that holders continue aggressive accumulation of Arbitrum cryptocurrency.
Whale buying shows market confidence
While the real identities of the big investors remain a mystery, their market activity has captured the attention of the crypto community. This bold move happens at a time when the Arbitrum is experiencing extreme volatility that has made it lose its value. In the last seven days, Arbitrum has lost over 19.60%, showing it is underperforming the global digital asset market, which is 2.40% down currently. It appears that crypto whales see ARB’s future potential and therefore are capitalizing on the current low prices to buy more tokens.
Whales renewing their interest confirm the ARB is an important layer 2 project. ARB is a layer 2 solution that decreases exorbitant gas fees and traffic jam issues on the Ethereum network by moving data storage and computation off-chain. The accumulation validates that investors and traders see ARB as a robust financial instrument.
ARB price sees a decline
Arbitrum is currently down 8.6% in the last 24 hours. However, its trading volume has risen 35.56% to $866.01 million over yesterday, indicating a recent increase in its market activity.
Meanwhile, ARB has ventured into the Web3 gaming sector through its partnership with prominent game developer Ubisoft. The latest report shows that Arbitrum launched its Web3 gaming subsidiary dubbed Captain Laserhawk on December 18. The development appears to be a key factor that has boosted Arbitrum network activity and perhaps would bolster its price performance soon.
The development occurs when the Arbitrum ecosystem is currently experiencing a return of excitement. Last week, ARB was ranked a top protocol based on capital inflows, outshining major participants including layer-1 blockchains.
The increase in weekly inflow and the recent development of its gaming unit launch proves its rising visibility. These could signal some bullish potential in the short term for the network and its native token, ARB.
Arbitrum has been witnessing some wild volatility currently. However, the interesting activity of whales stocking up ARB tokens and some advancement within its ecosystem are positive indicators for the network to sustain its resilience in the future.
