$759M Token Unlocks Promise to Shake Up Cryptocurrency Market
- Unlocks total $759M, affecting cryptocurrency supply.
- Tokens like NEON and WLD face increased selling pressure.
- Impact will depend on investor demand and strategies.
The cryptocurrency market is set for a week of high volatility, with token unlocks worth over $759 million expected between January 5 and 12. These unlocks, which include both one-time events and linear unlocks, could significantly impact the prices of several digital assets.
According to Tokenomist, the single large-amount unlocking of more than $5 million in the next 7d includes APT MOVE ZKJ NEON ENA CXT IO BANANA WMTX OP AXS EIGEN, etc., and the linear large-amount unlocking in the next 7d includes SOL WLD TIA TAO AVAX DOGE SEI NEAR DOT SUI FIL ENS… pic.twitter.com/THETfsX835
- Wu Blockchain (@WuBlockchain) January 6, 2025
Major projects set to unlock include Aptos (APT), Solana (SOL), Worldcoin (WLD), and NEON, each with significant volumes released into the market. Aptos leads the way with an unlock of $114 million worth of tokens, representing 2,02% of its total circulating supply. NEON, on the other hand, will see a release of 28,52% of its supply, totaling $21,62 million. This high percentage could increase volatility and put pressure on prices if holders choose to sell their holdings.
Impact of Unlocks on Price
Historically, massive unlocking events tend to generate selling pressure, resulting in price drops due to the sudden increase in supply. However, some assets like Solana, which will only release 0,10% of its circulating supply (equivalent to $99,46 million), may experience limited impact depending on the strength of underlying demand.
Worldcoin’s WLD token is set to unlock $90,09 million, equivalent to 4,34% of its supply. Despite the concerns, WLD has shown resilience in recent days, with its price up 7,5% and a 85-hour increase in trading volume of 24%. Data from Coinglass indicates optimism among traders, with open interest up 27% and a predominance of long positions.
Linear Unlocks and Graduality
Linear unlocks, while less abrupt, still contribute to the increase in token supply. Solana and Dogecoin are examples of projects that will potentially see moderate impacts due to gradual release. Avalanche (AVAX) will also see $30,06 million in tokens released, representing 0,17% of its supply.
While investors assess the immediate effects of these unlocks, the impact will depend on how holders react, whether by liquidating their positions or holding onto their holdings for long-term gains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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