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Cryptocurrency Market to Face $860 Million Token Unlock in July
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Around 40 crypto projects are set to unlock tokens next month, with a combined value of around $860 million set to hit the market. According to data From Token Unlocks, Xai, AltLayer, Arbitrum, and Aptos lead the charge with the largest token releases.
Xai will release approximately 198 million XAI tokens on July 9, representing 71.5% of its circulating supply, worth approximately $97 million. These tokens are allocated to the project’s team, reserve, investors and ecosystem.
Next up, Aptos will unlock 11.3 million APT tokens on July 12, worth nearly $79 million, for the Aptos Foundation, its community, key contributors and investors.
Arbitrum will release 92.6 million ARB tokens on July 16, worth $76 million, distributed among the project team, investors and advisors.
AltLayer token unlock is scheduled for July 25, with 684 million ALT tokens, representing nearly 45% of the circulating supply and worth approximately $133 million. These tokens are designated for various project needs, including protocol development and community incentives.
Other notable token unlocks include Io.net (IO), Starknet (STRK), and Sui (SUI).
Io.net is expected to unlock 7.5 million IO tokens, or nearly 8% of its circulating supply, worth approximately $26 million on July 1.
On July 1, Sui will unlock 64 million tokens, or more than 2.5% of its circulating supply, worth $56 million.
Finally, Starknet will release 64 million STRK tokens on July 15, representing approximately 5% of its circulating supply and a value of approximately $47 million.
What is the future of price?
Token unlocks refer to the release of a piece of token that was previously banned from trading. Investors often fear a price drop caused by selling pressure when a large amount of tokens enter the market.
However, token unlocks are not inherently bad. Small breakouts may have minimal impact. This is demonstrated by an annual report by Token Unlocks Tokens increase by an average of 34% after being unlocked for private investors.
Overall, the exact impact of token unlocking is often unpredictable. When considering an investment in cryptocurrencies, it is important to be aware of upcoming token unlocks and their potential impact on price.
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