Large-scale cryptocurrency token releases worth $389 million scheduled for this week, potentially causing significant volatility in the digital currency markets.
The digital asset scene is gearing up for an influx as approximately $389 million worth of tokens are on the verge of flooding the market this week. This torrent of tokens will consist of large, one-time cliff unlocks as well as more gradual linear unlocks.
Data from the blockchain analytics platform, Tokenomist, shared by crypto journalist Colin Wu, highlights some major cliff unlocks such as Solayer (LAYER), Ethena (ENA), and Spectre (SPEC), with the projects unleashing anywhere from $6 million to $86 million in tokens.
LAYER will account for the most significant outflow, with nearly 13% of its supply, or roughly 27 million tokens worth around $86.73 million becoming available. ENA, on the other hand, will inject slightly over 3% of its locked supply, valued at just under $50 million. Spectre (SPEC) is expected to release 10 million tokens, equivalent to 48.51% of its supply, worth approximately $21.3 million.
Other events include Kaspa, which is set to offload 144.64 million of its native KAS token priced at about $13.39 million, making up only 0.55% of its locked supply. Movement (MOVE), which recently drew attention after suspending co-founder Rushi Manche over a questionable market making deal with an elusive Chinese entity, is also gearing up to deploy 2% of its supply for $8.45 million in the upcoming days.
In addition to these one-time releases, there will also be a consistent stream of daily unlocks throughout the week. According to the Tokenomist website, Solana (SOL) and Worldcoin (WLD) will activate 465,000 and 37.23 million tokens, respectively, between today and May 12. Each will put out $9.67 million and $5.11 million worth of their respective assets daily.
Worldcoin has garnered particular attention after the Sam Altman-led project officially launched in six U.S. cities on April 30, signaling a broad geographical expansion of its Orb-based biometric identity verification system. Furthermore, the Donald Trump-linked meme coin, TRUMP, will initiate daily token unlocks worth $5.49 million for the next seven days, despite claims that its team had moved large portions of the token's supply to centralized crypto exchanges—a move some contend was a potential pump-and-dump setup.
Lastly, Dogecoin (DOGE) is also on the list to be gradually released, with 96.5 million tokens worth more than $16 million lined up for distribution across the week. At the present moment, the asset is trading relatively stable, down only 0.1% in the last 24 hours and 4.1% over the past seven days, with price movement essentially confined between $0.169 and $0.175.
Important Note: Token unlocks can significantly impact the digital asset market by increasing the circulating supply of cryptocurrencies, leading to increased market activity and potential volatility. The upcoming token unlocks might affect projects like Solayer (LAYER), Ethena (ENA), Spectre (SPEC), Kaspa, Solana, Worldcoin, and Dogecoin. The impact depends on the size of the unlock relative to the token's total supply, market demand, and overall market sentiment. Projects with strong use cases and community support may better weather the short-term volatility imparted by these events.
Author's Note: Be prepared for potential price fluctuations in the digital asset market as more than $389 million in tokens are set to launch this week. Remember to exercise caution and due diligence when investing in digital assets, and always consider the project's underlying fundamentals and long-term potential. Happy trading! 😊
- The digital asset market could experience significant price fluctuations, with approximately $389 million worth of tokens set to launch this week.
- Among the projects releasing tokens are Solayer (LAYER), Ethena (ENA), and Spectre (SPEC), each unleashing anywhere from $6 million to $86 million in tokens.
- LAYER will release the most tokens, with nearly 13% of its supply becoming available, equating to around $86.73 million.
- Investors should be aware that token unlocks can increase the circulating supply of cryptocurrencies, potentially leading to increased market activity and volatility.
- Projects with strong use cases and community support may be better equipped to weather the short-term volatility caused by these token unlocks.
