A mysterious Arbitrum (ARB) whale has made another major purchase of ARB token amid ongoing administrative chaos and market volatility.
Arbitrum Whale Accumulating ARB
According to on-chain data, the whale recently purchased 425,530 ARB tokens for 500,000 USDC at a price of $1.18 per token.
Thus, the whale has 10.6 million ARB tokens, worth a total of 12.91 million USD at current prices.
The identity and motives of the cryptocurrency whale are unknown, but the move came despite recent developments regarding the allocation of 750 million ARB tokens to the Arbitrum Foundation.
Arbitrum is one of the most anticipated Layer 2 solutions for Ethereum, aiming to provide scalability, security and decentralization for smart contracts and dApps. The token of the project was released a short time ago and made a big splash.
Arbitrum uses optimistic rollups to aggregate multiple transactions into a single chunk that is resolved on the Ethereum network. This reduces the congestion and cost of using the Ethereum mainnet. In this way, smart contracts and dApps can be used on Ethereum with lower gas fees and faster confirmation times.
It is similar to Optimism but has some differences in terms of design and features. It also differs from Polygon, which uses sidechains and other Layer 2 solutions. It also completely differs from ZK rollups, which use zero-knowledge proofs instead of optimistic rollups.
*Not investment advice.