Increased Selling Pressure Expected as Token Unlocks Worth Nearly $1 Billion Scheduled This Month
Several crypto projects, including Optimism, Avalanche, The Sandbox, Aptos, and Sui, are preparing for significant token unlocks in February. These unlocks will allow holders to sell or transfer their tokens, potentially impacting the market dynamics and trading volume.
Avalanche’s AVAX: Largest Unlock of February
The largest unlock scheduled for February is Avalanche’s AVAX. On February 22, approximately 9.54 million AVAX tokens, valued at $344.17 million, will be released, accounting for 2.60% of the circulating supply. Another notable unlock is Aptos on February 11, with 24.84 million APT tokens worth $229.54 million set to unlock.
The Sandbox, Optimism, and Sui: Major Token Unlocks
The Sandbox has its first unlock of 2024 on February 14, introducing 205.59 million SAND tokens worth $95.47 million. Optimism will unlock 24.16 million OP tokens valued at $76.58 million on the last day of February. Sui released 34.62 million tokens worth $54 million on February 3 without negatively impacting its price.
Token Unlocks and Price Actions
dYdX unlocked 33 million DYDX coins worth approximately $90 million on February 1 without experiencing major price swings. While token unlocks can introduce volatility and trading opportunities in the crypto market, it’s important to note that they don’t always result in a price decline. The market’s response to these unlocks may vary due to various factors influencing price actions.
Hot Take: Token Unlocks Bring Volatility and Trading Opportunities
The unlocking of nearly $1 billion worth of tokens this month is expected to bring increased volatility and trading opportunities to the crypto market. While holders gain the ability to sell or transfer their unlocked tokens, the market’s response may differ due to various factors. Traders and investors should closely monitor these unlock events and consider the potential impact on price dynamics.
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