News
From ENS to OP, $3B in Token Unlocks Coming: Impact on Crypto Market
- Cryptocurrencies are poised to unlock significant figures in July.
- Aptos and Optimism are notable projects that saw significant breakouts in July.
According to recent data, token unlocking events scheduled for July are set to release approximately $3 billion worth of tokens into circulation. These unlocks, involving multiple cryptocurrencies, are significant.
Simply put, they will increase the total supply of their respective assets and potentially impact the broader cryptocurrency market cap.
Upcoming Token Unlocks
According to a recent post by Cryptocurrency RankingJuly token unlocks would put $3 billion into circulation.
Alt Level [ALT] is set to have the highest unlock volume, at around 684 million ALT tokens, worth over $122 million. These tokens are expected to be unlocked on July 25.
Such events can positively and negatively impact the price dynamics of the token. The impact depends on the market’s absorption capacity and broader sentiment at the time of the unlock.
Furthermore, depending on how the market reacts, this could improve the token’s reputation or lead to increased volatility and caution on the part of investors.
Noteworthy unlocks expected
The recent analysis of Token Unlocks provided insights into several significant events scheduled for the next seven days. Among them, Ethereum Naming Service [ENS] AND 1 INCH these are the highlights.
Ethereum Name Service is set to unlock over $7 million worth of tokens in about five days. This could impact the token’s market behavior depending on investors’ actions after the unlock.
Additionally, 1INCH will unlock approximately $12,000 worth of tokens per day after the scheduled unlocking of ENS.
Other significant releases planned are Aptos [APT], Optimism [OP], Referee [ARB], World currency [WLD]AND Network on [SUI]Aptos is expected to unlock tokens worth over $80 million, while Optimism, over $73 million.
Uniswap [UNI] and Ronin are among the projects with significant unlocks worth more than $70 million.
Current Market Trends
AMBCrypto Analysis by CoinMarketCap data showed a positive trend in the cryptocurrency market. The overall market capitalization increased by almost 4% in the last 24 hours, pushing it to over $2.3 trillion.
This increase in market capitalization indicates a general bullish sentiment and an influx of investments into various digital assets.
Source: CoinMarketCap
The upcoming unlock events could play a pivotal role in further influencing the market dynamics.
While these unlocks increase the circulating supply of the respective tokens, the actual impact on market capitalization will largely depend on how the prices of these unlocked tokens react once they become available for trading.