BITPRISMIA
Token unlocking events usually weigh on prices, but multi-month reaccumulation, crowded shorts and bullish crypto prices could lead to a surprise rally, crypto analyst Will Clemente said.
The restaking protocol will unlock 1.67 billion tokens at 9 p.m. PST on Monday.
The collective 20 million APT to be unlocked then equates to 112% of the average daily trading volume over the prior 30 days, according to The Tie.
Unlocks to referred to staggered releases of the cryptocurrency frozen to keep early investors from liquidating in large numbers.
As the price of SAND slid 4% in August, the Sandbox Genesis smart contract had already emitted 60 million SAND tokens prior to the upcoming token unlocked scheduled for Aug. 14.
Unlocks that free up large amount of liquidity relative to average daily trading volume yield a deeper decline in the token's price within two weeks after the event, research by The Tie shows.
The dollar value of the unlock amounted to 38% of the cryptocurrency's average 30-day trading volume and had potential to push prices lower, per one analyst.
Huge increase in supply could hurt BLUR’s price. The token has also fallen after SEC labeled other tokens as securities.
More than 9.3 million tokens will be unlocked Sunday, representing 1.2% of AXAX’s total supply.
Token unlocks are widely seen as bearish catalysts. However, the latest price drop probably stems from a wider market swoon.