February 2024 Set To See Massive Crypto Unlocks
February is expected to be a significant month for the crypto market as multiple cryptocurrencies are set to unlock over $800 million worth of assets. According to TokenUnlocks, 26 crypto projects have scheduled token unlocks for February, potentially flooding the market with nearly $1 billion worth of assets. The majority of this liquidity will come from Avalanche (AVAX), with around $345 million worth of AVAX tokens set to be released in the middle of the month.
Unlock Events Scheduled for Major Projects
Aptos (APT), The Sandbox (SAND), and Avalanche (AVAX) are among the major projects with unlocking events planned for February 2024. Avalanche, for example, will unlock 9.54 million AVAX tokens, which accounts for 2.6% of the total supply, on February 22. These tokens will be distributed in four batches to strategic partners, the foundation, the Avalanche team, and airdrops.
Aptos (APT) will unlock 7.34% of its total supply on February 11, releasing 24.84 million APT tokens worth $228.55 million. Similarly, The Sandbox will unlock $205.59 million SAND tokens, representing 9.19% of its circulating supply, on February 14.
Ethereum L2 blockchain Optimism is also set to unlock 24.16 million OP tokens worth $71.51 million on February 29.
Potential Impact on Prices and Investors
Unlocking tokens is not uncommon in the crypto industry and can have both positive and negative effects on the price of these assets. However, once unlocked, these tokens can enter the open market and be freely sold.
This influx of tokens may result in a large supply available for trading simultaneously, potentially causing downward pressure on prices as supply surpasses demand.
Currently, the crypto market is relatively stable in terms of price volatility, although certain cryptocurrencies like Chainlink (LINK) have seen significant gains in the past week. Chainlink recently unlocked 19 million LINK tokens worth $341 million, and a significant portion was immediately deposited into Binance, suggesting a sell-off.
Hot Take: Crypto Market Braces for Massive Token Unlocks
February 2024 is expected to bring a wave of token unlocks in the crypto market, with over $800 million worth of assets set to be released. This surge in liquidity could have both positive and negative implications for prices and investors. As these unlocked tokens enter the open market, there may be increased selling pressure if holders decide to sell immediately. This influx of supply could potentially drive prices down as demand struggles to keep up. It will be interesting to see how the market reacts to these massive token unlocks and whether it leads to increased volatility or stability.
By
By
By
By