Crypto Assets to Look for in Expected Supply Shock in June 2024

• 1 SUI, STRK, and OP would be unlocking more than $50 Million worth of tokens.
• 2 ARB and APT would be unlocking assets worth more than $100 Million.
• 3 The expected token unlocks in June 2024 could lead to a bearish sentiment in the cryptocurrency market.

There happens to be an upcoming event in the cryptocurrency market known as a “supply shock,” which is expected to occur in June 2024. 

A supply shock happens when a significant amount of a cryptocurrency’s tokens become available to the public after being previously locked. This could occur due to the expiration of a certain locked period, where tokens that were allocated to early investors or developers become tradable.

The tweet from BSCN mentions on X that nearly $875 Million worth of tokens across various altcoins are expected to be unlocked in June 2024. 

Here’s a breakdown of the major unlocks to watch:

– 92.65 million ARB tokens, valued at approximately $106 Million, would be unlocked on June 16th.
– 11.1 million APT tokens, worth around $101 Million, would be unlocked throughout June, with a significant unlock on June 12th.
– 64 million STRK tokens, valued at $76 Million, would be unlocked on June 15th.
– 31.34 million OP tokens, worth approximately $78 Million, would probably be unlocked in June.
– 65 million SUI tokens, valued at $66 Million, would be unlocked on June 1st.

Notably, this event appears to be bearish or likely to lead to a decrease in major Altcoin token prices due to the potential impact on the supply and demand dynamics of the market.

How Would It Impact Supply & Dynamics?

Similarly, when a large number of tokens are suddenly released into the crypto market, the supply of the asset increases dramatically. Correspondingly, if the demand for these tokens does not increase at the same rate, then the excess supply of those assets could lead to a decrease in their price.

Moreover, there happens to be another drawback to this event. If the unlocked tokens belong to investors who have been waiting for the opportunity to sell those unlocked crypto assets, they may do so. 

Likewise, this would further add more selling pressure to the market. This could further drive down the asset prices, especially if a significant portion of the investors decide to sell their holdings shortly after the unlock event.

Summary

The expected token unlocks in June 2024 could lead to a bearish sentiment in the cryptocurrency market. If the new supply of tokens outpaces demand, this could potentially decrease the prices of the affected assets.

Amanda Shinoy

Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.