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Arbitrum, a leading Ethereum layer-2 solution, is facing worrying challenges, as 97% of its holders are currently enduring losses. According to recent data from IntoTheBlock, this trend reveals that the majority of Arbitrum (ARB) investors are "out of the money," indicating that their holdings are at a loss.

The figures highlight a concerning situation, with approximately 1.15 million addresses collectively holding 6.67 billion ARB, equating to roughly $4.53 billion at current market rates. 

This positions Arbitrum as the foremost cryptocurrency with a market capitalization exceeding $1 billion, where the ratio of holders experiencing losses vastly outweighs those seeing gains.

No optimism

Arbitrum's fully diluted market capitalization stands at $6.75 billion, yet only $2.18 billion worth of ARB shows a profit. A significant portion of these losses stems from investments made in Arbitrum tokens priced between $1.31 and $1.5 per token.

This group comprises 172,440 addresses holding 2.98 billion ARB tokens, making it the largest segment of loss-making ARB holders. For instance, Arbitrum's price is currently around $0.67 per ARB token, with some variation depending on the exchange.

Despite being a leading Ethereum L2, Arbitrum's price performance has been weak, leading to a widespread negative financial impact on its investor base. The data underscores the challenging market conditions for ARB holders, reflecting broader market perturbations affected by fear and greed.