Crypto Whales Have Gone on a Significant Accumulation Spree, an Indicator That Could Push ARB Prices Higher

Virtual currencies are down this week, with BTC losing 2.33% to $101,546.17. Yesterday, the US monetary authority announced a reduction of the lending rate

Crypto whales have been accumulating Arbitrum (CRYPTO: ARB) in a big way, an indicator that could push prices of the layer-2 token higher.

What Happened: Senior crypto trader Ali Martinez shared data on Wednesday showing that whales have bought over 40 million ARB tokens over the past week.

“This shows that the big players in the crypto market continue to aggressively accumulate Arbitrum,” Martinez said.

The large buy comes as Arbitrum is experiencing extreme volatility that has caused it to lose 19.60% of its value in the last seven days. The global digital asset market is down 2.40% over the same period.

Despite the recent sell-off, it appears that crypto whales see ARB’s future potential and are capitalizing on the current low prices to buy more tokens.

The renewed interest from whales also confirms the importance of Arbitrum as a layer-2 project. ARB is a layer-2 solution that decreases exorbitant gas fees and traffic jam issues on the Ethereum (CRYPTO: ETH) network by moving data storage and computation off-chain.

The accumulation of ARB by whales validates the token as a strong financial instrument that is being recognized by investors and traders.

ARB Price Action: Arbitrum is down 8.6% to $0.0000793 over the last 24 hours. The stock is trading flat pre-market Friday.

Arbitrum has ventured into the Web3 gaming sector through its partnership with prominent game developer Ubisoft (EPA:UBIP).

The latest report shows that Arbitrum launched its Web3 gaming subsidiary dubbed Captain Laserhawk on December 18.

The development comes as the Arbitrum ecosystem is currently experiencing a return of excitement.

Last week, ARB was ranked a top protocol based on capital inflows, outshining major participants including layer-1 blockchains.

The increase in weekly inflow and the recent development of its gaming unit launch shows Arbitrum is becoming more visible.

These developments could signal some bullish potential in the short term for the network and its native token, ARB.