Arbitrum & ApeCoin in Spotlight Before Major Token Unlocks

Arbitrum and ApeCoin in Focus Amid Major Token Unlocks

This week, the prices of Arbitrum (ARB) and ApeCoin (APE) are expected to be in the spotlight as both networks prepare for the unlocking of millions of tokens.

ApeCoin is currently trading at $0.756, marking a 57% increase from its lowest point in August, while Arbitrum remains stable at $0.5345, a level it has maintained for the past few weeks.

Arbitrum to Unlock 93 Million Tokens

The upcoming token unlocks are drawing significant attention due to the dilution of both cryptocurrencies. Arbitrum is set to unlock 93.2 million new tokens on Monday, Sep. 16, increasing the circulating supply to over 3.52 billion tokens. Despite this unlock, Arbitrum still has more to release, with a total supply of 10 billion tokens. The final unlock is scheduled for April 2027.

Arbitrum’s ecosystem is currently facing challenges:

• The number of active addresses has dropped to 455,000, down from the year-to-date high of 1.50 million, according to Nansen data.
• The number of daily deployments on the blockchain has fallen to 8,600 from the year-to-date high of 32,750.
• Transaction count decreased by over 24% in the last 24 hours, settling at 1.07 billion.

Additionally, Arbitrum has been surpassed by Base Blockchain in the decentralized exchange (DEX) sector. Transaction volume on Arbitrum’s DEX networks dropped by 20% in the last seven days to $2.7 billion, while Base handled $2.91 billion in transactions.

ApeCoin Token Unlock Ahead

ApeCoin, a cryptocurrency developed by Yuga Labs, is also preparing for a token unlock. On Sep. 17, the network will unlock 15.38 million tokens, increasing the circulating supply to 620 million tokens. ApeCoin has a maximum supply of 1 billion coins, with 15.3 million being released each month. The final unlock is expected in March 2026.

In addition, there’s anticipation surrounding the upcoming launch of ApeChain, a layer-2 network that will allow developers to build decentralized applications (dApps) across various sectors, including gaming, decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized public infrastructure.

Impact of Token Unlocks and Federal Reserve Decision

Token unlocks are often considered bearish events in the cryptocurrency industry as they dilute the value for existing holders. Additionally, they reduce staking yields, as many of these tokens are added to staking pools, lowering returns for investors.

Both ApeCoin and Arbitrum are also expected to respond to the upcoming Federal Reserve interest rate decision on Wednesday. Economists predict the Fed may announce its first interest rate cut since 2020, as U.S. inflation has eased while the unemployment rate remains above 4%. Historically, cryptocurrencies and other risk assets tend to perform well when the Federal Reserve adopts a dovish stance.