Crypto: $860 million in tokens released next month

The crypto market is preparing to experience an eventful month of July with the release of tokens worth a total of $860 million. Around 40 crypto projects will see a portion of their tokens released onto the market, an event that could have significant repercussions on prices and market dynamics.

Projects in mind

Among the many projects concerned, the Xai crypto stands out with a massive unlocking planned for July 9. Approximately 198 million XAI tokens, representing 71.5% of its circulating supply, will be released with an estimated value of $97 million. These tokens will go to the project's team, pool, investors, and ecosystem.

Aptos crypto will follow closely with a release of 11.3 million APT tokens on July 12, worth nearly $79 million. These tokens will be distributed to the Aptos Foundation, its community, key contributors, and investors.

Arbitrum plans to release 92.6 million of its ARB crypto on July 16, valued at $76 million, intended for the project's team, investors and advisors. Finally, AltLayer will unlock 684 million ALT tokens on July 25, representing 45% of its circulating supply and valued at approximately $133 million.

Other notable projects include Io.net, Starknet, and Sui. Io.net will release 7.5 million IO tokens, representing 8% of its circulating supply and valued at $26 million, on July 1. Starknet will release 64 million STRK tokens on July 15, representing 5% of its circulating supply, valued at $47 million.

Sui, meanwhile, will unlock 64 million SUI crypto on July 1, representing 2.5% of its circulating supply and valued at $56 million.

Implications for the crypto market

Token unlocking is the release of tokens that were previously prohibited from trading.

This release may lead to increased selling pressure as a large quantity of tokens enter the market, potentially pushing prices down. Investors often fear these releases, anticipating a drop in prices.

However, not all token unlocks are necessarily negative. Small releases may have minimal impact on prices.

Furthermore, according to an annual report by Token Unlocks, tokens increase by an average of 34% after their release to private investors. This shows that unlocks can also provide attractive buying opportunities if market conditions are favorable.

The exact impact of token releases often remains unpredictable. While some investors may prepare for a price drop, others see these moments as opportunities to enter the market at lower prices. The inherent volatility of cryptocurrencies means that releases can create both risks and opportunities.

The advantages of Bitcoin in this context

Unlike many altcoins, Bitcoin remains a safe haven in the crypto universe. Its significant market capitalization and market leadership position make it a more stable option compared to more volatile altcoins.

Investors often view Bitcoin as a hedge against the extreme fluctuations seen in newer, less established projects.

Bitcoin continues to enjoy growing adoption by prominent financial institutions and corporations.

This institutional recognition strengthens its position and resilience in the face of market turbulence. In addition, regulations and financial infrastructures around bitcoin are developing, offering additional security to investors.

The Bitcoin blockchain is the oldest and most tested of all. Its security, transparency and decentralization are widely recognized, which gives it a clear advantage over other projects still in development or less mature. In times of volatility, these characteristics make Bitcoin a more attractive option for investors looking for stability.