Altcoin
From ENS to OP, $3B in token unlocks coming: Impact on crypto market
With the upcoming token unlocks, how the market absorbs them would determine their impact.
- Crypto set for significant unlocks in July.
- Aptos and Optimism are notable projects seeing significant unlocks in July.
According to recent data, token unlock events scheduled for July are set to release approximately $3 billion worth of tokens into circulation. These unlocks, which involve various cryptocurrencies, are significant.
In a nutshell, they will increase the total supply of the respective assets and potentially impact the broader cryptocurrency market capitalization.
Upcoming token unlocks
According to a recent post from CryptoRank, token unlocks for July would release $3 billion into circulation.
AltLayer [ALT] is set to have the highest unlock volume, at approximately 684 million ALT tokens, valued at over $122 million. These tokens are due to be unlocked on the 25th of July.
Such events can positively and negatively affect the token’s price dynamics. The impact depends on the market’s absorption capacity and the broader sentiment at the time of the unlock.
Also, depending on how the market responds, it could either enhance the token’s reputation or lead to increased volatility and investor caution.
Notable unlocks to be expected
The recent analysis from Token Unlocks provided insights into several significant events scheduled for the next seven days. Among these, Ethereum Name Service [ENS] and 1INCH are key highlights.
Ethereum Name Service is set to unlock over $7 million worth of tokens in about five days. This could influence the token’s market behavior depending on investor actions post-unlock.
Additionally, 1INCH will unlock around $12,000 worth of tokens a day after ENS’s scheduled unlock.
Other significant unlocks scheduled are Aptos [APT], Optimism [OP], Arbitrum [ARB], Worldcoin [WLD], and Sui Network [SUI]. Aptos is expected to unlock over $80 million worth of tokens, and Optimism, over $73 million.
Uniswap [UNI] and Ronin are also among the projects with significant unlocks exceeding $70 million in value.
Current market trends
AMBCrypto’s analysis of CoinMarketCap data showed a positive trend in the cryptocurrency market. The overall market capitalization has increased by almost 4% in the last 24 hours, pushing it to over $2.3 trillion.
This uplift in market cap indicates a general bullish sentiment and an influx of investments across various digital assets.
Source: CoinMarketCap
The upcoming unlock events could play a pivotal role in further influencing the market dynamics.
While these unlocks increase the circulating supply of the respective tokens, the actual impact on the market cap will largely depend on how the prices of these unlocked tokens react once they are available for trading.
