The unlocking of crypto tokens could lead to a market correction

The current cryptocurrency market bull cycle may be shorter than previous ones and is unlikely to end with a major altcoin rally.

As analysts from 10x Research reported, cryptocurrency funds, which will concentrate a significant share of coins in the future, may be to blame.

“Despite high daily trading volumes of over $100 billion and rapid development and upgrades of crypto projects, there are significant constraints on the industry’s growth potential.”

10x research analysts

According to analysts, large volumes of nearly $2 billion in tokens unlocked over the next 10 weeks could have a negative impact on altcoins.

Unlocks via token data shows that the biggest upcoming unlock will happen on May 15th from Layer 2 crypto derivatives platform Aevo. The developers will release 828.93 million AEVO, equivalent to approximately $1.17 billion. Of the total supply of 1 billion coins, 18.5% will be sent to private investors.

A smaller unlock of $39.78 million in WLD tokens by Sam Altman World currency project it is programmed for July 24th. This will be 0.05% of the total token supply or 2.4% of the current number of coins in circulation.

On May 12, Aptos will unlock 11.31 million APTs, worth $101.67 million, approximately 2.6% of the circulating supply.

In April the experts from 10x Research warned that the market was reaching a critical inflection point that could result in a major correction. The company called “unexpected and persistent” inflation the main driver.

With fewer than three cuts expected in the bond market and the 10-year Treasury yield above 4.5%, risky assets will likely see a price reset.

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