The ONDO token unlock is looking more likely to be a major event in the altcoin market.
It appears that the altcoin market might be looking at a potentially volatile week ahead, especially for the ONDO token ONDO $0.90 24h volatility: 5.9% Market cap: $2.86 B Vol. 24h: $200.70 M . That is, as billions of dollars worth of altcoins are set to flood the market.
While many coins are set to add to the altcoin market supply in the week, data from Tokenomist confirms that Ondo Finance’s ONDO token will be leading the charge.
ONDO, alongside other coins like ARB ARB $0.32 24h volatility: 3.0% Market cap: $1.55 B Vol. 24h: $116.03 M , STRK STRK $0.15 24h volatility: 2.4% Market cap: $422.08 M Vol. 24h: $21.65 M , SEI SEI $0.21 24h volatility: 2.3% Market cap: $1.07 B Vol. 24h: $59.68 M , are billed to unlock tokens worth a whopping $3 billion in the week, the largest weekly amount since November.
ONDO, Other Altcoins Eye Major Token Unlocks to Shake Up the Market
As Tokenomist says, Ondo Finance will release 1.94 billion ONDO tokens on January 18, worth about $2.23 billion.
Notably, the numbers already signal how big a deal this token release is. This is especially true considering that the figure exceeds the current circulating supply of 1.4 billion by over 130%.
So, by all means, the ONDO token unlock is looking more likely to be a major event in the altcoin market.
The ONDO unlock also exceeds the token’s daily trading volume by a landslide. So, it might be safe to say that market activity will also pick up significantly in the coming days.
For what it might be worth, token unlocks refer to staggered releases of crypto tokens. These tokens, as they were, are initially locked to prevent early investors or project insiders from dumping large amounts of tokens on the market. In short, token unlocks are usually done with the aim of maintaining stability by gradually increasing supply.
Market Expectations Ahead of Release
Usually, when an unlock event produces tokens that exceed the average trading volume or circulating supply, as has been identified with ONDO, the market often reacts with increased volatility. At least, that is what research by The Tie has found out.
The Tie believes that such token release events often show the token in question being faced with serious volatility. That is, in the lead-up to and following the event.
As of publication, the Coinspeaker price page showed ONDO trading at $1.12, its lowest price since December 2. This does not only represent an 8.74% drop for the day but also a 41.6% fall in a month.
Notably, the token has been in a nosedive since reaching an all-time high of $2.10 on December 16.
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