Crypto Markets on High Alert Amidst Major Releases
Historically, large-scale token unlocks have been a signal of turbulence within the cryptocurrency market. In most cases, these unlock events boost the number of coins in circulation and subsequently drive prices down.
So, with as many as seven major token unlocks slated to take place in the coming week, the market is holding its breath in anticipation of possible price turbulence.
June 1 Locks Down Unlock Schedule
First off, on June 1, dYdX (DYDX) is set to unlock a whopping $67.77 million in DYDX tokens. Second, about $30.78 million worth of 1inch (1INCH) tokens will be unlocked, dumping an additional 98.7 million tokens into the already existing 1.15 billion circulating supply of 1INCH tokens.
On the same day, Axelar will unlock 33.30 million tokens, which amount to 3.33% of its max supply, valued at $24.28 million. In the same event, Skale is set to unlock 195.25 million tokens valued at approximately $17.30 million. This adds to the significant impact that the day will have on the market.
Other Unlocks Piling Pressure on Market
On June 1, 28.88 million Biconomy tokens valued at $16.47 million will be unlocked. Of particular note, Sui will unlock 65.08 million tokens valued at $67 million to hit the market, further increasing the circulating supply to 2.33 billion SUI.
That is not all in the wave of token unlocks.
On May 29, Portal will unlock 30.61 million tokens equivalent to 3.06% of the total supply, valued at about $26.59 million. Lastly, Orbler will unlock 37.41 million tokens valued at $14.73 million on June 2.
Potential Market Impact
This volume of tokens entering the market will most probably cause ripples all over the cryptocurrency market.
Traditionally, such moves have set off bearish trends as increased supply mostly results in price declines. Investors and traders should prepare for probable volatility as the market readjusts to this impact of supply.
The experts surmise that the unlocks, though it may be short-term problem, but in the long term, there are always opportunities to seek. For example, increased liquidity will attract more investors who can stabilize the market at some point in the future.
Conclusion
While the cryptocurrency market is already in a corrective phase, the influx of billions of dollars worth of new tokens could further more hinder any significant recovery.
Nevertheless it’s important to keep informed and prepared. Whether an investor or a trader, knowing the dynamics can help you navigate probable volatility. Keep an eye on these key dates, be prepared to adjust your strategies accordingly.
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