$5.5B in crypto token unlocks set to shake markets in January 2024
January 2024 begins with a wave of major token unlocks, totalling over $5.5 billion in potential sell-off pressure. Several high-profile projects, including Ondo Finance and Hyperliquid, will release large volumes of tokens this month. Despite the looming uncertainty, some assets like Bitcoin and Hyperliquid have shown unexpected resilience in recent trading sessions.
The first major unlock arrives on January 18, when Official Trump (TRUMP) releases 50 million tokens valued at $270 million. Most of these tokens will go to founders, raising concerns about increased volatility in the memecoin market.
Just a day later, Ondo Finance (ONDO) will unlock roughly 1.9 billion tokens worth over $840 million. The DeFi platform specializes in tokenizing real-world assets, such as US Treasury bonds, and has backing from BlackRock. Its team includes former Goldman Sachs employees, and the project has undergone SEC review.
On January 26, Bitget Token (BGB) will release nearly 140 million tokens, worth around $500 million. These tokens are primarily allocated to the team and marketing efforts. Meanwhile, Hyperliquid (HYPE) is set to unlock 12.4 million tokens worth $327 million. Despite the impending release, HYPE has defied expectations by maintaining strong price momentum and recent gains.
Amid these developments, Bitcoin appears poised for a push toward $100,000 in the coming weeks. The broader market, however, faces potential turbulence as investors react to the flood of newly available tokens.
The unlocks across multiple projects will test market stability in the coming weeks. Ondo Finance, Bitget Token, and Hyperliquid alone account for over $1.6 billion in tokens entering circulation. While Bitcoin shows bullish signals, traders will be watching closely to see how the broader crypto space absorbs the sell-off pressure.
