Binance backs Arkham: Time for ARKM to shine?
- Binance’s positive impression of Arkham’s AI made it invest in ARKM.
- 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’s Binance [BNB] in the spotlight, and not it has nothing to do with its troubles with the U.S. SEC or the exchange itself.
Rather, it was the exchange’s incubator arm, Binance Labs, that announced that 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, its objective 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 providing data transparency on the blockchain. It is noteworthy to mention that Arkham launched in July 2023.
However, after rewarding some of its early users with the ARKM token, the project found increasing the number of holders hard. But it seems Binance is coming to its rescue. This was because of its blog post, released on the 15th of November.
Binance has its reasons
Binance, via the statement, noted that its decision to invest in ARKM was mainly because of Ultra. Ultra is the proprietary Artificial Intelligence (AI) engine of Arkham. The feature allows users to track the fund flow of several addresses.
At press time, information available to AMBCrypto showed that Binance did not disclose the exact value of the tokens it bought. But the impact of the revelation, combined with the bullish AI narrative, 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.
Previously, AMBCrypto had reported mounting sell pressure on ARKM. But, as of now, it appears that the plunge has stabilized. Besides the price action, the firm’s disclosure has the potential to instill confidence in retail market participants to hold the token.
The market is not yet impressed
But has this been the case? Well, AMBCrypto’s assessment of Santiment’s on-chain data showed that market participants are being cautious about making a decision. This inference was because of the number of holders of the token.
At the time of writing, the ARKM holder count only jumped from 16,600 to 16,700. This means that the market is interested in the project, but many are refraining from buying into it immediately.
This increase in interest was also shown by the Social Volume and Social Dominance. Social Dominance compares the social volume of an asset with the 100 largest assets by market cap.
Arkham, as of this writing, is rated number 343 on the market cap standing. But the development sent both metrics in the upward direction. With ARKM’s market cap less than $100 million at press time, some market players may consider the project as undervalued.
Realistic or not, here’s ARKM’s market cap in BNB’s terms
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 buys may want to take a look at Binance Labs’ portfolio before following suit.
Regardless of the decision of the broader market, there is no denying that the development has brought more eyes to ARKM.