
The week promises to be eventful on the crypto market with a historic release of tokens estimated at $3 billion, the largest since November 2023. At the heart of this event, Ondo Finance is preparing to release 1.94 billion ONDO tokens on January 18, representing more than 130% of its current circulating supply.

A massive release that worries the market
The crypto market is preparing for a crucial week starting January 13, 2024. According to Tokenomist data, several major projects including ONDO, ARB, STRK and SEI will participate in this massive unlock.
The Ondo Finance platform, specialized in asset tokenization, is leading the way with a planned release of 1.94 billion ONDO tokensvalued at $2.23 billion. This colossal quantity far exceeds the daily trading volume of the token, which currently fluctuates between $250 and $300 million.
Faced with this potential selling pressure, ONDO's price is already showing signs of weakness. The token is trading at $1.14, its lowest level since early December, down 5% over 24 hours and 15% since the start of the month. This downward trend began after reaching an all-time high of $2.10 in mid-December.
Impact and outlook on the crypto ecosystem
Token releases are an essential mechanism in the crypto ecosystem, allowing a gradual distribution of tokens to early investors and development teams. This approach traditionally aims to prevent massive dumps and maintain a certain price stability. However, the exceptional scale of the release planned for this week raises legitimate concerns.
A recent study from The Tie highlights that tokens facing unlocks exceeding 100% of their average daily volume typically experience high volatility before and after the event. In the case of ONDO, the ratio between unlocked volume and daily trading volume portends a particularly turbulent period.
The impact of this mega-unlock could ripple across the entire altcoin market, creating opportunities for savvy traders, but also increased risks for less experienced investors. The next few days will be decisive in assessing the market's capacity to absorb this massive supply of tokens.
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