Recent Sell-Offs Cause Losses for Arbitrum Whales

According to on-chain data, Jump Trading, Wintermute Trading, and Abraxas Capital made massive transfers of BTC, Arbitrum (ARB), and ETH to crypto exchanges during the crypto market decline.

Seven significant cryptocurrency whales sold 20.41 million ARB tokens (equivalent to $16.05 million) in the last thirty hours, resulting in a loss of $8.15 million and a decline of 33.67 percent, according to Lookonchain data.

The present valuation of the cryptocurrency market has reached a six-month low, similar to March’s.

The market’s pessimism intensified due to the August collapse and concerns about the SOL and FTX bankruptcy proceedings.

According to analysis firms Arkham Intelligence and Lookonchain, trading firms such as Jump Trading, Abraxas Capital Management, and Wintermute Trading deposited over $30 million worth of Bitcoin, Ethereum, and Arbitrum across exchanges, extending the adverse trend.

Arkham Intelligence emphasized Abraxas Capital’s transfer of 14,130 ETH (approximately $22.5 million) to Bitfinex, while market maker Jump Trading transferred nearly 236 BTC (approximately $5.9 million) to Binance.

Major market maker Wintermute Trading deposited 5.285 million ARB (approximately $4.07 million) to Binance.

Despite its former prominence, ARB experienced a steep decline between September 9 and September 11, reaching a record low.

Although its total value locked (TVL) exceeds $1.64 billion, this downturn has raised questions about the competitive advantage of the Arbitrum network.

Investors are eagerly pursuing information regarding the causes of this decline.