Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
$58 Billion Token Unlocks Triggered Altcoin Market Turmoil

$58 Billion Token Unlocks Triggered Altcoin Market Turmoil

BeInCryptoBeInCrypto2024/06/24 15:46
By:BeInCrypto

The altcoin market suffered dramatically in 2024, with $58 billion worth of token unlocks imposing selling pressure. The supply through token unlocks can potentially kickstart a bear market.

Token unlocks could profoundly impact the value of altcoins such as Avalanche (AVAX), DYDX, and Pyth Network (PYTH), which have already seen significant declines.

$85 Million Token Unlock in the Last Week of June

Since reaching its peak in March, Bitcoin’s price has overshadowed the altcoin market, which has plummeted by nearly 25%. The upcoming unlocks, involving digital assets previously allocated to venture capitalists and founders, are a primary catalyst for this downturn.

As the market recovers from a lengthy crypto winter , these early investors want to capitalize by selling their holdings.

Read more: Which Are the Best Altcoins To Invest in June 2024?

Projects will release $85.5 million worth of tokens this week alone into the market. The largest of these is from Optimism (OP) , which plans to release 31.34 million OP tokens valued at approximately $56.10 million on June 30. Currently, just 26% of OP’s supply is unlocked.

“Given these unlock days are publicly known, downside price reflexivity can be exacerbated as non-VC holders look to front-run anticipated selling from unlocking VCs,” Edward Chin, co-founder of Parataxis Capital said .

He further notes that this leads to notable activities in the OTC market, where brokers manage sales of these tokens at steep discounts.

“The market is strange at the moment, in that the many infrastructure projects that investors funded over the bear market are now coming to their token launch, but there is not a ton of regular buyers of these tokens at high prices,” tokenomics expert Lex Sokolin said.

Furthermore, a recent CoinGecko study highlights the market’s vulnerability . It shows that over 20% of the top 300 cryptocurrencies have a large portion of their tokens still locked.

Read more:  Tokenomics Explained: The Economics of Cryptocurrency Tokens

This situation indicates a substantial upcoming supply that could enter the market. Particularly, newer cryptocurrencies like Worldcoin (WLD) and Cheelee (CHEEL) exhibit the lowest float ratios, suggesting a high potential for volatility .

0

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.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Powell faces the ultimate test: At least three dissenters at the December meeting, Federal Reserve consensus collapses!

The "Fed mouthpiece" reported that internal divisions within the Federal Reserve have intensified amid a data vacuum, with three board members appointed by Trump strongly supporting a dovish stance, while the hawkish camp has recently expanded.

Jin102025/11/18 03:20

Weekly Hot Picks: Data Disappearance Doesn’t Stop the Fed’s Hawkish Stance! Global Multi-Asset Markets Face “Backstabbing”

The U.S. government shutdown has ended, but the release of key data remains chaotic. The Federal Reserve has sent frequent hawkish signals, causing significant declines in gold, silver, stocks, and currencies on Friday. The U.S. has launched Operation "Southern Spear". Buffett delivered his farewell letter, and the "Big Short" exited abruptly. What exciting market events did you miss this week?

Jin102025/11/18 02:55
Weekly Hot Picks: Data Disappearance Doesn’t Stop the Fed’s Hawkish Stance! Global Multi-Asset Markets Face “Backstabbing”

SignalPlus Macro Analysis Special Edition: Is It Going to Zero?

Over the past week, cryptocurrency prices declined once again. BTC briefly reached $94,000 on Monday due to lighter selling pressure before pulling back, and major cryptocurrencies saw further week-on-week declines...

SignalPlus2025/11/18 02:22
SignalPlus Macro Analysis Special Edition: Is It Going to Zero?