Arbitrum Price Crashes 10% – Leaves 99% Investors Struggling

Nearly all of Arbitrum's 619,000 investors are now in a losing position, with losses reaching 62% from the highest point. Currently, the crypto market is experiencing its highest level of fear in almost eight months.

Timeline of Arbitrum

Amidst the recent crypto market downturn, several significant players, including Jump Trading, Wintermute Trading, and Abraxas Capital, initiated large-scale transfers of BTC, Arbitrum (ARB), and ETH to various crypto exchanges, as per on-chain data.

Arbitrum (ARB), the fast-growing Ethereum scaling network, saw its token plunge to a record low on Monday. The token slipped to a low of $0.80, much lower than its record high of $1.88. This decline brought its market cap to more than $1 billion. Arbitrum's token decline coincided with more weakness in the futures market.

Bitcoin (CRYPTO: BTC) moved lower, with the cryptocurrency prices trading below the $26,000 level on Monday. Ethereum (CRYPTO: ETH) also traded lower, falling below the key $1,600 mark this morning.

Offchain Labs co-founder Ed Felten said there were one or two fraud challenges submitted on a version of Arbitrum running on the Ethereum proof-of-work fork after the Merge, which was defeated.

Arbitrum is an Ethereum layer-2 scaling network that's seeing a spike in activity, thanks to increased traction in the DeFi ecosystem. It's backed by some of the largest players in the investment space.

Crypto and fintech firm ZTX has stated it's looking to build a new 3D virtual world atop the Arbitrum blockchain, which accounts for more than 60 percent of ETH's Layer-2 market share.

Arbitrum, a leading Ethereum-based layer2 chain, had its native token ARB exhibiting bearish actions since April 2023. Meanwhile, institutions seem ready to trim their holdings as they transfer ARB to centralized exchanges (CEXs). SpotOnChain tweeted about CAP Finance and Mandala Capital preparing to shed ARB tokens. Mandala Capital transferred 3.

Key Points: Ember has been closely monitoring a significant development within CAP Finance. According to recent reports, CAP Finance executed a substantial transfer of 1.88 million ARB tokens (equivalent to $1.93 million) from its vault address just 16 hours ago.

Coinbase's new Ethereum (ETH) layer-2 scaling solution briefly surpassed Optimism (OP) and Arbitrum (ARB) this week in terms of daily transactions. According to data provided by each scaling solution's respective block explorers, Base hit 617,330 transactions on August 13th, compared to 438,559 for Optimism and 544,575 for Arbitrum on the same day.

VC firms that invested in Arbitrum would be at 400% gains on their ARB tokens should prices remain at today's levels, and it is unclear how much they plan to sell when their tokens are unlocked.