Sun 30 Jun 2024 ▪
4
min of reading ▪ by
The crypto market is poised for a turbulent July with the unlocking of tokens worth a total of 860 million dollars. Around 40 crypto projects will see a portion of their tokens released on the market, an event that could have significant repercussions on prices and market dynamics.
The leading projects
Among the many projects affected, Xai crypto stands out with a massive unlock scheduled for July 9th. Approximately 198 million XAI tokens, representing 71.5% of its circulating supply, will be released with an estimated value of 97 million dollars. These tokens will go to the team, the reserve, investors, and the project’s ecosystem.
The crypto Aptos will closely follow with an unlock of 11.3 million APT tokens on July 12th, worth nearly 79 million dollars. These tokens will be distributed to the Aptos Foundation, its community, key contributors, and investors.
Arbitrum plans to release 92.6 million of its ARB crypto on July 16th, valued at 76 million dollars, intended for the team, investors, and project advisors. Lastly, AltLayer will unlock 684 million ALT tokens on July 25th, representing 45% of its circulating supply and valued at approximately 133 million dollars.
Other notable projects include Io.net, Starknet, and Sui. Io.net will unlock 7.5 million IO tokens, representing 8% of its circulating supply and valued at 26 million dollars, on July 1st. Starknet will release 64 million STRK cryptos on July 15th, accounting for 5% of its supply, worth 47 million dollars.
Sui, meanwhile, will unlock 64 million SUI cryptos on July 1st, representing 2.5% of its circulating supply and valued at 56 million dollars.
Implications for the crypto market
Token unlocking refers to the release of tokens that were previously prohibited from trading.
This release can lead to increased selling pressure, as a large quantity of tokens enters the market, potentially driving down prices. Investors often fear these unlocks, anticipating a price drop.
However, not all-token unlocks are necessarily negative. Smaller unlocks can have a minimal impact on prices.
Additionally, according to an annual report by Token Unlocks, tokens increase on average by 34% after their unlock for private investors. This shows that unlocks can also offer interesting buying opportunities if market conditions are favorable.
The exact impact of token unlocks remains often unpredictable. While some investors might prepare for a price drop, others see these moments as opportunities to enter the market at lower prices. The inherent volatility of cryptocurrencies means that unlocks can create both risks and opportunities.
The advantages of Bitcoin in this context
Unlike many altcoins, Bitcoin remains a safe haven in the crypto universe. Its significant market capitalization and market leader position make it a more stable option compared to more volatile altcoins.
Investors often see Bitcoin as a hedge against the extreme fluctuations observed in newer and less established projects.
Bitcoin continues to benefit from increasing adoption by financial institutions and renowned companies.
This institutional recognition strengthens its position and resilience in the face of market turbulence. Moreover, regulations and financial infrastructures around bitcoin are developing, offering additional security to investors.
Bitcoin’s blockchain is the oldest and most tested of all. Its security, transparency, and decentralization are widely recognized, giving it a certain advantage over other projects still in development or less mature. In times of volatility, these characteristics make Bitcoin a more attractive option for investors seeking stability.
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Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
