About the Token Unlocking Process in the Cryptocurrency Market
About $200 million worth of cryptocurrencies will be released on the market this month.
At least six large projects account for more than 80% of the total, or $174 million, according to TokenUnlocks. This significant increase could lead to a significant shift in the market dynamics of these assets.
Token Unlocking Process
The so-called “token unlocking” process involves distributing previously restricted assets in the cryptocurrency landscape.
Axie Infinity (AXS), the leader of the group, aims to issue 15.13 million tokens — about 11.5% of its circulating supply — worth approximately $71.2 million.
Another important player, Optimism (OP) – the layer 2 network of Ethereum (ETH) – is set to open $33.58 million worth of tokens on the last day of October.
The upcoming opening may lead to increased liquidity or selling, largely influenced by prevailing investor sentiment. The same goes for tokens like Optimism, currently priced at $1.36, which have remained relatively stable but may face new market pressure due to the upcoming unlock.
Meanwhile, ApeCoin (APE) will use the tokens unlocked to boost its treasury, and plans to add approximately $19.3 million worth of tokens to be unlocked this month.
Immutable This opening can act as a lever for price movement, either rising due to increased trading activity or falling if investors decide to cash out.
The Sui (SUI) blockchain will also unlock more than 34 million native tokens worth $16.21 million. For its part, Aptos (APT) will issue 4.54 million tokens worth $24.94 million, representing just under 2% of its circulating supply.
The unlocking of tokens in the cryptocurrency market this month is expected to have a significant impact on the market dynamics of these assets. With over $174 million worth of tokens being released, investors will closely monitor the liquidity and selling activities influenced by prevailing sentiment. The upcoming unlockings of Axie Infinity, Optimism, ApeCoin, Sui, and Aptos tokens will shape the price movements in the market, with the potential for both rises and falls. Traders and investors should stay updated with the latest developments to make informed decisions.