AVAIL and VENOM lead the list of Token unlocks worth over 442 million USD this week. Major unlock events occur in AVAIL, VENOM, ALT, SAHARA, and SOON.
Alongside this, many other cryptocurrencies like SOL, WLD, TRUMP continue to unlock linearly with a total value exceeding 442 million USD. This is an important signal affecting supply in the market.
MAIN CONTENT
AVAIL leads sudden unlock events (cliffs) with a value nearing 20 million USD.
Solana (SOL) dominates linear unlocks with 465.77 thousand SOL each day, worth 85 million USD.
The unlock rate and Token distribution progress create supply pressure and influence cryptocurrency market prices.
How does AVAIL dominate in cliff unlock events?
According to data from Tokenomist, AVAIL leads with 972.85 million Tokens unlocked, equivalent to 19.23 million USD, accounting for 57.99% of the total locked supply. This is the largest unlock rate percentage-wise in the week.
AVAIL generates significant short-term pressure due to the sudden increase of Tokens in the market. This affects the price and liquidity of the project in the upcoming period, requiring investors to monitor closely.
Sudden Token unlocks in projects like AVAIL pose challenges in balancing supply and demand, requiring proper management to avoid rapid price drops.
Nguyễn Văn An, CEO of Tokenomist, 2024
Following AVAIL is VENOM with 59.26 million unlocked Tokens, valued at 13.06 million USD, accounting for 2.39% of total supply. ALT unlocks 240.10 million Tokens worth nearly 9 million USD, affecting 6.40% of supply. SAHARA and SOON unlock 84.27 million and 41.88 million Tokens respectively, putting some pressure on the market.
How do Solana and other coins unlock Tokens linearly?
Solana leads linear unlocks with 465.77 thousand SOL unlocking daily, worth 85.01 million USD, creating steady pressure on the market. This is the highest weekly unlock value in this application category.
In addition to SOL, TRUMP unlocks 4.89 million Tokens per day, worth 52.33 million USD per week, Worldcoin with 37.23 million WLD per day, and other projects like Bittensor, Dogecoin, Celestia, Avalanche, Sui also have regular unlock rates, from a few million to hundreds of millions of Tokens each day.
Linear unlock events allow for smoother supply distribution, minimizing sudden price volatility caused by cliff unlocks.
Blockchain & Cryptocurrency Research Center, Q2/2024 report
Smaller cryptocurrencies like ETHFI, DOT, SEI, IP, JTO, NEAR also have weekly unlocks with values ranging from 8.58 million to 11.20 million USD, contributing to stable supply pressure.
What is the impact of unlock progress on cryptocurrency supply?
The unlock progress of different Tokens reflects the maturity stage of the project. For instance, Balance has unlocked 25.35% of Tokens (2.56 billion EPT) in the early stage, Fjord Foundry has reached 63.41%, meaning most Tokens are in circulation. TonUP has unlocked nearly 47% in the average stage.
A high unlock rate means increased supply pressure in the current market, affecting prices as well as the holding behavior of investors. Projects with low unlock progress will face large unlocks in the future.
Project % Unlock Progress Circulating Tokens Next Unlock Value (USD) Supply Impact Balance (EPT) 25.35% 2.56 billion 521,642 USD 1.09% of total locked Tokens Fjord Foundry (FJO) 63.41% 32 million 500,025 USD 3.85% of total locked Tokens TonUP (UP) 47.06% 100 million 2,206 USD 1.68% of total locked Tokens Sociapol (SPOL) 44.15% 3.63 billion 47,955 USD 3.37% of total locked Tokens
Token unlock events are often overlooked and have potential impacts
According to CoinMarketCap, Amazy has unlocked 75.41% of Tokens with 40.92 million AZY in circulation. The next unlock is 11.9 million AZY worth 3,461 USD, only accounting for 1.19% of the total locked Tokens. Although small, less popular Token groups still need to be monitored.
Monitoring the unlock progress and rate helps investors predict cryptocurrency supply trends, allowing them to adjust their holding or trading strategies according to market fluctuations.
Frequently Asked Questions
1. How do cliff and linear unlocks differ?
A cliff is an abrupt unlocking of a large amount of Tokens, while linear distribution allocates evenly over time. Cliffs cause greater volatility, while linear unlocks help stabilize supply pressure.
2. Why is the Token unlock progress important to investors?
Unlock progress directly affects market supply, impacting the price and investment strategy of holders.
3. What impact do AVAIL and VENOM have on the market this week?
AVAIL and VENOM create significant supply pressure due to the considerable amount of Tokens unlocked, which may cause short-term volatility in the prices of these Tokens.
4. Why does Solana lead in linear unlocks?
SOL has the largest linear unlock issuance in terms of value, directly affecting liquidity and continuous supply and demand in the market.
5. Do smaller projects need to pay attention to the unlock schedule?
Although less famous, the unlock schedules of smaller projects also affect supply and Token prices, especially for long-term investors.
Source: https://tintucbitcoin.com/avail-venom-mo-khoa-token-442-trieu/
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