The activity of Ethereum whales are noticed to have rised after the market is expecting the Arbitrum airdrop, according to a report.
This is expected to increase market volatility significantly.
The recent dry performance from Ethereum is attributed to investor's expectation of the impact of the airdrop on the market.
An Ethereum whale's activity has been noticed who moved 7,868 ETH to Binance and the same received 19.6 million USDC from Binance.
Source: NewsBTC
This increased movement of funds to exchanges is seen as a potential selling pressure once the ARB tokens are airdropped.
However, this could also be possible that these funds are moved in order to buy ARB tokens once it's launched on the market.
Either way, this is activity is expected to increase Ethereum's market volatility in the coming days or even hours.
The Arbitrum airdrop is reported to have generated significant interest from investors and as more developers come into the network, the demand for ARB is expected to rise which may create short term price fluctuations for both ARB and Ethereum.
At press time, majority of analysts expect a flash drop in the prices of ARB considering the volume of free ARB to be distributed among users. However the long term perspective for ARB remains unclear.
Follow me:
