Top 20 Altcoins at Risk Ahead of $498 Million Token Unlock This Week

Data from TokenUnlocks indicates that this week could be crucial for cryptocurrency markets. With at least $498 million worth of tokens set to be unlocked in the next seven days, investors may be wondering: should they be concerned about this development?

We have the answers for you.

Major Tokens on the Move

The TokenUnlocks report reveals that both cliff and linear unlocks are expected this week. The cliff unlock method releases all locked tokens at once after a specified period, while the linear unlock method involves a gradual release of tokens over time.

Among the tokens unlocking through the cliff method, ARB, AXS, and EIGEN are notable for their significant unlock amounts. For the linear unlock method, WLD stands out with the highest value.

The linear unlock method is generally considered safer than the cliff method, as it mitigates the risk of market volatility associated with large, sudden token releases.

Cliff Unlock Highlights

ARB, AXS, EIGEN, STRK, APE, PIXEL, ADA, and PRIME are the prominent tokens scheduled to be unlocked through the cliff method this week. ARB will see the largest cliff unlock this week in terms of value, with at least $51.04 million worth of ARB tokens ( nearly 2.65% of its circulation supply) set to be unlocked.

The unlocks of $43.40 million worth of AXS (6.08% of the supply) and $40.05 million worth of EIGEN (6.01% of the supply) are also notable. 

Linear Unlock Insights

Several important tokens are due for unlocking through the linear method in the coming week, including WLD, SOL, TAO, AVAX, SEI, NEAR, DOT, DOGE, SUI, FIL, BEAM, and ARKM.

The largest linear unlock by value this week is WLD, with around $85.25 million worth of tokens (at least 7% of the total circulating supply) set to be unlocked. Other notable linear unlocks include $79.21 million worth of SOL (0.11% of the supply), $33.86 million worth of TAO (0.68%), $20.80 million worth of AVAX (0.17%), $17.38 million worth of SEI (1%), and $13.85 million worth of NEAR (0.24%).

What Investors Should Know

Large token unlocks can often raise concerns about market oversupply. According to the basic principles of supply and demand, an excess supply can lead to decreased demand and a subsequent dip in prices.

In conclusion, it is crucial for investors to closely monitor tokens unlocked through the cliff method, particularly those releasing a higher percentage relative to their circulating supplies. Keeping an eye on these developments will help navigate potential market fluctuations this week.

What are your thoughts on this week’s token unlocks? Will they shake up the market or create opportunities?