- Binance’s positive impression of Arkham’s AI made it invest in ARKM.
- The ARKM price spiked, but market participants are still wary.
The events surrounding the early bull market (as some market players like to call it) continue to take interesting turns. This time it is so Binance [BNB] is in the spotlight, and not that it has nothing to do with the problems with the US SEC or the stock exchange itself.
Rather, it was the exchange’s incubator arm, Binance Labs, that announced what it had invested in Arkham [ARKM]. Unlike the more popular Binance exchange, Binance Labs does not operate as an entity for facilitating cryptocurrency trading.
Instead, the goal is to invest in early-stage blockchain projects.
ARKM, on the other hand, is the native token of Arkham Intelligence. The project is an on-chain intelligence platform that provides data transparency on the blockchain. It is noteworthy to mention that Arkham was launched in July 2023.
However, after rewarding Some of its early users with the ARKM token found the project difficult to increase the number of holders. But it looks like Binance is coming to his rescue. This was due to the blog post published on November 15.
Binance has its reasons
Binance, via the rack, noted that his decision to invest in ARKM was mainly due to Ultra. Ultra is the Arkham’s proprietary Artificial Intelligence (AI) engine. This feature allows users to track the flow of money from different addresses.
At the time of writing, information available to AMBCrypto showed that Binance was not disclosing the exact value of the tokens it purchased. But the impact of the revelation, combined with the bullish AI narrative, has propelled the ARKM token to new heights.
A closer look at the price movement by our research team showed that ARKM’s price had increased by 22.25% in the last 24 hours.
Source: CoinMarketCap
AMBCrypto previously had that reported increasing selling pressure on ARKM. But as of now, it looks like the decline has stabilized. In addition to the price action, the company’s disclosure has the potential to build confidence among retail market participants to hold the token.
The market is not yet impressed
But has this been the case? Well, AMBCrypto’s review of Santiment’s on-chain data showed that market participants are cautious when making a decision. This inference was due to the number of holders of the token.
At the time of writing, the number of ARKM holders has only increased from 16,600 to 16,700. This means that the market is interested in the project, but many are reluctant to buy into it immediately.
This increase in interest was also reflected in Social Volume and Social Dominance. Social Dominance compares the social volume of an asset with the 100 largest assets, measured by market capitalization.
Source: Santiment
Arkham has a market cap rating of 343 at the time of writing. But the development sent both metrics in an upward direction. Since ARKM’s market capitalization is less than $100 million at the time of writing, some market players may view the project as undervalued.
Realistic or not, here it is The market capitalization of ARKM in terms of BNB
At the same time, it is too early to assume that ARKM has long-term potential. However, participants who believe that the organization makes good purchases may want to take a look at the Binance Labs website. portfolio before following this example.
Regardless of the broader market’s decision, there is no denying that the development has brought more attention to ARKM.
