Token Unlocks in December: What to Expect
In the world of cryptocurrency, token unlocks are events that can significantly impact market sentiment and price volatility. November saw around $450 million in unlocked tokens, but December is set to be even busier with approximately $750 million worth of tokens being released.
1) DYDX
DYDX has the largest unlock scheduled for December. The project plans to release around 150 million tokens, valued at almost $500 million. This represents 83.21% of its circulating supply and 15% of the total supply.
Tomorrow, DYDX holders will witness this token unlock, which was originally planned for January 2023 but rescheduled due to bear market conditions. The allocation breakdown includes investors at $276.19 million, founders, employees, advisors, and consultants at $152.09 million, and future employees at $69.72 million. In 2024, DYDX will begin a monthly unlocking pattern of around 34 million tokens for the first six months.
An on-chain analysis suggests that whales are already moving DYDX to exchanges for withdrawal, increasing selling pressure on the token.
2) 1inch
1inch Network will unlock approximately 6.58% of its total token supply on December 1st, equivalent to $33.7 million of its circulating supply. The allocation for this release includes the team, investors, and venture capitalists receiving $33.44 million.
1Inch has experienced a 4.73% decrease in the past seven days, and the token unlock could potentially cause further price decline.
3) SUI
The decentralized layer 1 chain SUI will have another token unlock on December 3rd, with the team releasing 40 million SUI tokens worth around $24.61 million. This unlock represents 4.24% of its circulating supply.
The Community Access Program will receive 34.62 million SUI tokens or $20.82 million. While SUI has seen a 2.35% price increase in the past seven days, the upcoming unlock may result in a price decline.
4) Aptos
Aptos has a significant token unlock scheduled for December 12th, releasing 24.8 million APT tokens, representing 8.96% of its circulating supply or $172.9 million.
The foundation will receive 1.33 million APT tokens valued at $9.28 million, core contributors will receive 11.88 million APT valued at $82.65 million, investors will receive an allocation of 8.42 million APT tokens, and the community will receive 3.21 million APT tokens.
Previous APT token unlocks have caused price slumps, and the upcoming unlock could have a similar impact on the token’s price.
Hot Take: Token Unlocks in December – Challenges and Opportunities
The upcoming token unlocks in December present both challenges and opportunities for market participants. Staying well-informed on these projects, monitoring market trends, and embracing diversification can be effective strategies.
Despite potential short-term price impacts, experts believe that the broader crypto community remains bullish overall. The fear and greed index indicates strong investor interest in the market, suggesting that the long-term impact of these unlocks may be limited.
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