The market for alternative cryptocurrencies (altcoins) is set for a volatile week, largely due to the impending token unlocks that will release billions of dollars worth of supply for several tokens. The Ondo Finance’s ONDO token is one of the main tokens involved in this event, and its unlock, scheduled for Jan. 18, is particularly significant.

Key Highlights:

1. $3 Billion in Token Unlocks:

• The weekly unlocks calendar, which includes ONDO, ARB, STRK, SEI, and others, amounts to a total of $3 billion. This is the largest unlock amount since November.

2. ONDO Token’s Major Unlock:

• Ondo Finance’s ONDO token is set to release 1.94 billion ONDO tokens worth $2.23 billion, which is more than 130% of its circulating supply of around 1.4 billion tokens.

• This release is several times larger than its daily trading volume, which has recently ranged between $250 million to $300 million.

3. Unlocks and Market Volatility:

• Token unlocks are usually staggered to prevent large-scale liquidations from early investors or project team members all at once. However, large unlocks, such as ONDO’s, can increase volatility by flooding the market with significant supply.

• According to research by The Tie, tokens experiencing unlocks that equal or exceed 100% of their average daily volume tend to see heightened volatility before and after the event.

4. ONDO’s Price Movement:

• At the time of writing, ONDO is trading at $1.14, representing a 5% drop for the day and a nearly 15% decline month-to-date.

• ONDO prices have been on a downward trajectory since hitting an all-time high above $2.10 on Dec. 16, with the latest price representing the lowest level since Dec. 2.

Potential Impact:

• The January 18 unlock for ONDO could trigger significant price volatility as a result of the large amount of supply being released.

• Given that the unlock is larger than ONDO’s daily trading volume, there may be concerns about downward pressure on its price.