Top Altcoins At Risk of Dropping This week Ahead of $498M Token Unlock
The post Top Altcoins At Risk of Dropping This week Ahead of $498M Token Unlock appeared first on Coinpedia Fintech News
Data from TokenUnlocks suggests that this week is set to be a crucial week for cryptocurrency markets. As per TokenUnlocks, at least $498 million worth of tokens are scheduled to be unlocked in the next seven days. Should crypto investors worry about this development?
Massive Token Unlock This Week
The TokenUnlocks report indicates that both cliff and linear unlocks can be expected this week. The token cliff unlock method refers to releasing all locked tokens at once after a specific period. Meanwhile, the token linear unlock method involves gradually releasing tokens over time.
Among the tokens which will be unlocked through the cliff unlock method, ARB AXS and EIGEN stand out as the ones with the highest unlock amount. Among those to be unlocked in the linear unlock method, WLD ranks highest in terms of unlock amount.
The linear unlock method is considered safer than the cliff method as the former ensures that the market does not face the threat of volatility.
Cliff Unlocks Over the Next 7 Days
ARB, AXS, EIGEN, STRK, APE, PIXEL, ADA, and PRIME are the prominent tokens scheduled to be unlocked through the cliff method this week. ARB will see the largest cliff unlock this week in terms of value, with at least $51.04 million worth of ARB tokens ( nearly 2.65% of its circulation supply) set to be unlocked. The unlocks of $43.40 million worth of AXS (6.08% of the supply) and $40.05 million worth of EIGEN (6.01% of the supply) are also notable.
Linear Unlocks This Week
WLD, SOL, TAO, AVAX, SEI, NEAR, DOT, DOGE, SUI, FIL, BEAM, and ARKM are among the important tokens due for unlocking through the linear unlock method in the next seven days. Around $85.25 million worth of WLD tokens (at least 7% of the total circulation supply) will be unlocked this week, making it the largest linear unlock in terms of value. Around $79.21 million worth of SOL (0.11% of the supply), $33.86 million worth of TAO (0.68%), $20.80 million worth of AVAX (0.17%), $17.38 million worth of SEI (1%), and $13.85 million worth of NEAR (0.24%) are also significant unlocks.
Potential Impact on Crypto Market Prices: Will We See a Dump?
Large token unlocks often create concerns about market oversupply. The basic supply and demand theory preaches that anything in excess supply creates a fall in demand and thus a dip in price.
In conclusion, it is important to closely watch those unlocked through the cliff method, especially those releasing a higher percentage relative to their token circulation supplies.
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