By the end of this month, hundreds of millions of dollars worth of previously locked up cryptocurrency tokens will be flooding the market. In some cases, token supply could increase dramatically and potentially create selling pressure.
wake up first super bowl On Sunday apartment, 7.32% of the total token supply will be released. The amount of APT released at that time is expected to amount to approximately $224.82 million based on the current price. Token Unlock.
Proportionally, the biggest token unlock of the month comes next week on Valentine’s Day. That morning, the $96 million Metaverse gaming startup was born. sandbox Native token SAND is issued for the first time. This corresponds to 9.19% of the total supply of SAND.
Why are so many already existing tokens being introduced to the market? In most cases, cryptocurrency tokens follow an elaborate roadmap that carefully plans to release a specific percentage of the supply of a given token into circulation, one batch at a time, to ensure the stability and long-term health of the token from launch.
Tokens can be allocated for a variety of purposes, including distribution to investors, team members, or rewards to the entire ecosystem. Token roadmaps are often years or even decades long.
In general, cryptocurrency traders closely watch token unlocks (especially proportionally significant unlocks). This is because such events can significantly increase token supply and thus increase selling pressure, impacting the price.
Additional token unlocks worth tens of millions of dollars each are scheduled to be unlocked during the last three weeks of February.
February 16th, Ape Coin, a cryptocurrency in the Bored Ape ecosystem, will release 2.6% of the total token supply (approximately $21.84 million worth of APE). At the time of writing, ApeCoin has only released about 60% of its planned 1 billion token supply so far.
As of the end of the month, February 21, $363.5 million worth of blockchain platforms had been secured. avalanche The native token, AVAX, is scheduled to be launched on the market. However, considering AVAX’s relatively high price ($37.75 at time of writing). CoinGecko— That chunk represents only 2.6% of the total supply of tokens.
And on February 28th, the native token of the Ethereum layer-2 network was born. optimism, OP will see its circulation increase by a similar 2.52%. This amount of OP is worth $82.87 million at the time of writing.
editor: Ryan Ozawa.
