The altcoin market is experiencing volatility as over $500 million worth of tokens are set to be unlocked this week, including $80 million in Worldcoin (WLD).
The altcoin market is showing some volatility as investors gear for more than $500 million in token unlocks this week. With such a massive value of tokens getting unlocked for teams, investors, and other ecosystem advisors, it will create some downward pressure on the price of these tokens.
As per the data shared by TokenUnlocks, over $80 million in Worldcoin’s WLD WLD $0.95 24h volatility: 8.6% Market cap: $1.87 B Vol. 24h: $206.00 M , $51 million in Arbitrum’s ARB ARB $0.53 24h volatility: 3.7% Market cap: $2.83 B Vol. 24h: $565.94 M , and nearly $40 million each in Eigenlayer’s EIGEN EIGEN $1.26 24h volatility: 3.9% Market cap: $411.81 M Vol. 24h: $65.77 M and Axie Infinity’s AXS AXS $2.32 24h volatility: 5.9% Market cap: $387.45 M Vol. 24h: $34.50 M will be released over the next seven days.
The Worldcoin (WLD) token release would overall increase the cryptocurrency’s supply by 7%. Later, the token distribution would happen among Worldcoin investors, team members, and advisors. Initially, the WLD tokens distributed to early contributors were part of a three-year lock-up schedule. However, in July, the lock-up period extended to five years.
Furthermore, the Layer 2 network Taiko will see a supply surge of 15% with more than $18 million unlock scheduled. Out of the total $500 million in unlocks, tokens valued at $200 million will be released in a “cliff”, which refers to a substantial release of tokens all at once. Below is the list of altcoins along with their token unlocking value.
- $ARB (2.56%) – $48.97 million.
- $EIGEN (6.01%) – $41.40 million.
- $AXS (6.08%) – $41.55 million.
- $STRK (3.30%) – $25.00 million.
- $TAIKO (15.00%) – $18.24 million.
- $APE (2.31%) – $10.86 million.
- $PIXEL (7.05%) – $6.80 million.
Apart from these altcoins, giants like Solana’s SOL will also see $80 million worth of unlocks as part of its “linear” plan, which involves emitting and absorbing the tokens by the market.
Unlocks raise the total supply of a specific token, but this doesn’t mean they will immediately enter the open market. The expectation among investors or traders that token recipients may sell their newly unlocked tokens can trigger a preemptive sell-off, causing the token price to decrease before or during the unlock event.
US Presidential Elections to Trigger Altcoin Season
Amid the volatility in the Bitcoin price following September gains, the altcoin space has come under selling pressure debunking the ‘Uptober’ rally expectations. Analysts are examining historical market trends to predict a potential altcoin season by the end of the year.
CRG’s analysis indicates that Bitcoin’s current phase mirrors that of the late 2020 cycle. He noted that typically, more than 100 weeks after Bitcoin hits its bottom, its price tends to reach a new peak, often followed by an altcoin rally about a week later.
As per the CoinShares report, multi-asset investment products experienced their 17th consecutive week of inflows, albeit modest at $1.5 million. In contrast, Ethereum continued its trend of outflows, amounting to $9.8 million last week.
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