Since its launch earlier this year, the price of Arbitrum (ARB) has faced significant challenges. Emerging in a bear market, the altcoin has experienced a consistent decline in value, triggering panic-selling among investors. Surprisingly, even the large-scale holders, known as whales, have joined in on the selling spree, despite incurring substantial losses in the process.

A recent transaction highlighted by on-chain tracker Lookonchain revealed that Wintermute Trading, one of the prominent whales, sold off 4.35 million ARB tokens worth $3.36 million on the Binance exchange. Another whale followed suit, moving 3.8 million tokens valued at $2.93 million to Binance as well.

In a 30-hour period, a chart posted by Lookonchain displayed the dumping of a staggering 20.4 million ARB tokens by seven whales. Given the current all-time low prices of ARB, these investors have suffered significant financial setbacks as a result.

The collective investment of these whales in the 20.4 million ARB tokens amounted to $24.19 million over the past few months. Unfortunately, the realized amount from their recent sales only amounted to $16.05 million, resulting in a staggering loss of over $8 million, equating to a 34% decrease in their initial investment.

While the continuous selling pressure has prompted a rapid decline in ARB’s value, it is essential to note that Arbitrum still maintains the highest total value locked (TVL) among all Layer 2 networks, standing at $2.3 billion. In comparison, Polygon and Optimism hold TVLs of $970 million and $798 million, respectively.

This demonstrates a continued high level of confidence in the Arbitrum network, supported by a daily active user count surpassing 100,000. Despite the challenges posed by the bear market, Arbitrum’s decentralized finance (DeFi) performance remains a promising factor.

Looking forward, ARB’s short-term performance hinges on the overall sentiment in the cryptocurrency market. Should the sentiment improve and the price of Bitcoin rise, altcoins such as ARB are likely to follow suit and initiate a recovery.

At present, the ARB price stands at $0.7731, showing a 6.46% decrease within the last day and a weekly decline of 13.47%.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.