Investing.com – After a rise at the beginning of the week, cryptocurrency markets have turned downward, erasing half of the gains.
As cryptocurrencies generally continue their downward trend on the last business day of the week, reported token unlocks could add additional pressure to the respective altcoins. According to the Token Unlocks report, a total of $376.27 million worth of crypto assets are scheduled to be unlocked next week.
What are billionaire investors investing in? Find out on InvestingPro! Use code WIN for up to 20% off your registration.
Not sure how to use the code? Watch the step-by-step video we provided.
Contact our support team here for any inquiries.
Unlocking is planned for 5 popular altcoins
Among the major altcoins set to increase in supply due to unlocking between May 27 and June 2 are Optimism (OP), Sui (SUI), Ethena (ENA), 1inch (1INCH), and dYdX (DYDX).
According to the report, on May 31, 82.12 million dollars worth of OP tokens, representing 2.88% of the circulating supply on the Optimism network, will be released into the market. Due to the high amount of unlocked OP, this activity is expected to increase the altcoin’s volatility.
On June 1, $70.35 million worth of SUI, representing 2.78% of the circulating supply, will be released. Additionally, on the same date, the unlock of DYDX, representing 11.91% of the circulating supply, and $47.97 million worth of ENA tokens will take place.
Impact of unlocking on altcoin prices
Altcoin investors closely monitor tokens set to unlock in recent times, with the belief that these activities, which will increase the supply of the respective crypto assets, could put pressure on the price of the asset. The expectation of both selling and buyers selling these assets can sometimes negatively affect the price of the altcoin whose unlock is taking place.
This point is also influenced by the current sensitivity of the market. In periods of expected rise in the crypto market, the effect of unlocks remains weak, while in downturns, it can be interpreted as an additional negative.
Source: investing.com
