February Unlocks: Analyzing Potential Price Drops
This month, the crypto space is set to witness over 20 token unlocks with a combined value of over $800 million. This is a significant increase compared to the previous month. Among the notable projects unlocking tokens in February are popular chains in DEX, general Purpose Layer 1s, and Metaverse.
1) DYDX
The decentralized exchange DYDX is starting off the month with a heavy unlock of 33.33 million tokens worth over $94 million on February 1. This accounts for 10.63% of its circulating supply. The unlocked tokens will be allocated to investors, project team/advisors/consultants, and future employees.
It’s important to note that DYDX has had previous unlocks, including a $500 million token release in December. Token unlocks often lead to a temporary price drop, and the upcoming DYDX unlock may have a similar effect.
2) Aptos (APT)
Aptos, a layer-1 blockchain project, has one of the largest unlocks in February. On February 11, 24.48 million APT tokens worth about $218.16 million will be unlocked, accounting for 7.36% of its circulating supply. The tokens will be allocated to the foundation, community, core contributors, and investors.
Previous token unlocks by Aptos have had a mild effect on its price. While there may be a temporary negative reaction this time as well, it is usually short-lived.
3) Sandbox (SAND)
The Sandbox has a massive unlock scheduled for February 14. They plan to release 205.59 million tokens, which account for 9.19% of the circulating supply and are worth around $93 million. The tokens will be allocated to the team, advisors, and company reserve.
Past unlocks by Sandbox have caused some price movement, but the effects are usually temporary. SAND is currently showing a 1.8% increase in the past 24 hours.
4) Avalanche (AVAX)
Avalanche is another project with an unlock in February. On February 22, 9.54 million AVAX tokens worth around $315 million will be unlocked. The tokens will be allocated to strategic partners, foundation, team, and airdrop.
These token unlocks provide opportunities for price fluctuations, but they are often temporary. It’s important to keep an eye on these events if you’re interested in these projects.
Hot Take: Potential Price Drops Ahead
The unlocking of tokens in February presents potential opportunities for price drops in various crypto projects. While these drops may cause temporary negative reactions, based on previous observations, they tend to be short-lived. It’s crucial for investors and enthusiasts to stay informed about upcoming token unlocks and monitor their impact on the market.
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