Key Takeaways:
- A significant $906 million worth of cryptocurrency tokens will be unlocked this week, potentially impacting market prices.
- The TRUMP token (Official Trump) leads the unlocks with over $330 million scheduled for release.
- Traders should exercise caution as these token unlocks can often generate negative sentiment and pressure prices downwards due to increased circulating supply.
- 15 altcoins are set to unlock more than $5 million each in the next seven days.
- Tokens like OMNI, DRB, TRUMP, and QAI are particularly noteworthy due to the large percentage of their circulating supply being unlocked.
This week is shaping up to be a potentially volatile one for the cryptocurrency market, with a substantial $906 million in tokens scheduled for release, according to data from Wu Blockchain. This influx of new tokens entering circulation can often trigger negative sentiment among investors, leading to price declines.
Leading the charge is the TRUMP token (Official Trump), with a massive unlock event exceeding $330 million. This single unlock event represents a significant portion of the total unlocked value for the week, making it a crucial asset to watch.
Tokenomist data further highlights the scale of these unlocks, indicating that over 38 altcoins, valued at $748.04 million, will experience “cliff unlocks” in the coming week. A cliff unlock refers to the immediate release of a predetermined number of tokens after a specific vesting period.
Top Altcoins to Watch for Token Unlocks (Over $5 Million):
Tokenomist has identified 15 altcoins with unlocks exceeding $5 million this week. These include:
- Official Trump (TRUMP)
- Fasttoken (FTN)
- Connex (CONX)
- QuantixAI (QAI)
- Arbitrum (ARB)
- deBridge (DRB)
- UXLINK (UXLINK)
- Starknet (STRK)
- Omni Network (OMNI)
- Melania Meme (MELANIA)
- Immutable (IMX)
- Sei (SEI)
- ApeCoin (APE)
- Onyxcoin (XCN)
High Percentage Unlocks Signal Potential Volatility:
Traders should pay close attention to tokens unlocking a significant percentage of their circulating supply. This week, OMNI (78.91%), DRB (63.24%), TRUMP (20%), and QAI (12.70%) stand out in this regard. Historically, when a token unlock surpasses 1% of the circulating supply, it often exerts downward pressure on the price due to the sudden increase in available tokens. Therefore, these four assets are likely to experience heightened volatility this week.
Large Linear Unlocks: Solana, Worldcoin, and Celestia:
In addition to the cliff unlocks, several cryptocurrencies will undergo large linear token unlocks. These include:
- Solana (SOL): 465,770 SOL tokens worth approximately $60.95 million.
- Worldcoin (WLD): 37.23 million WLD tokens valued at around $27.91 million.
- Celestia (TIA): 6.96 million TIA tokens worth roughly $17.12 million.
While an increase in circulating supply is generally considered bearish, planned linear unlocks might have a less pronounced impact. This is because the market is often aware of these scheduled releases, and traders may have already factored them into their positions.
Trader Caution Advised:
Despite the potential for planned unlocks to be priced in, traders should remain vigilant. The overall increase in circulating supply from these various token unlocks can still generate negative sentiment across the market, potentially leading to price declines for the affected assets. It is crucial to conduct thorough research and manage risk accordingly during this period of significant token unlocks.
