Crypto token unlocks could lead to market correction

The current bull cycle of the crypto market may be shorter than previous ones and is unlikely to end with a big altcoin rally.

As 10x Research analysts reported, venture crypto funds, which will concentrate a significant share of coins in the future, maybe to blame.

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

10x Research analysts

According to analysts, large volumes of nearly $2 billion in token unlocks over the next 10 weeks could negatively impact altcoins.

TokenUnlocks data shows that the largest upcoming unlock will occur on May 15 from layer 2 crypto derivatives platform Aevo. The developers will release 828.93 million AEVO, equaling roughly $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 from Sam Altman’s Worldcoin project is scheduled for July 24. This will be 0.05% of the total supply of tokens or 2.4% of the current number of coins in circulation.

On May 12, Aptos will unlock 11.31 million APT, valued at $101.67 million, approximately 2.6% of the circulating supply.

In April, experts at 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 trigger.

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


#Crypto #token #unlocks #lead #market #correction

Leave a Comment