The crypto market is set for a wild week with the imminent release of $230 million worth of tokens. This massive injection of liquidity could lead to high volatility and test the resilience of some digital assets.
A wave of liquidity that worries crypto investors
The token unlocking phenomenon is a recurring event in the crypto ecosystem. It involves the release of previously locked tokens, often held by early investors or development teams.
This week, no fewer than 14 crypto projects will make releases, for a total of $229.77 million.
This mass arrival There are legitimate concerns about the introduction of new tokens into the market. Indeed, a sudden increase in supply can create downward pressure on prices if holders decide to immediately sell their newly unlocked assets.
Three major players in the spotlight
Among the many projects concerned, three stand out in particular.
First, Aptos (APT) will release 11.31 million APT tokens, worth $66.95 million, on August 12. This is part of a monthly release program that results in annual inflation of nearly 29%.
Next, The Sandbox (SAND) will experience a massive release on August 14, with 205.59 million SAND tokens being released, worth $54.96 million. This represents 9% of the project’s current market cap, which could have a significant impact on its price.
Finally, Arbitrum (ARB) will release 92.65 million ARB tokens on August 16, worth $53.05 million. This injection represents a monthly inflation of 2.8%.
Faced with these massive releases, investors must be extra vigilant. The expected volatility could offer buying opportunities for the most daring, but also risks of significant losses. It is crucial to closely monitor the evolution of prices and trading volumes in the coming days.
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