Over $730M Tokens Unlock In July 2024, Could Be A Supply Shock!

• 1 It’s only the second day of the month and July already looks like a volatile one.
• 2 A major sell-off from investors is expected in some projects.
• 3 More than $730 Million worth of the tokens would be pumped into circulation in the crypto-verse. 

July could have a supply shock in store where crypto tokens valued at around $730 Million are geared to be unlocked across various projects by the end of the month. Per TokenUnlocks, the vesting period for 45 cryptos is ending in July. 

July Token Unlocks | Source: TokenUnlocks

During the vesting period, crypto token holders are safeguarded against the potential impact of a widespread sell-off. This is because investors and team members are restricted from liquidating their holdings due to a mandated lock-in period, commonly called “vesting.”

When a significant amount of previously locked crypto tokens are available for the public, usually, a supply shock occurs. Once the lock-in periods of the crypto tokens expire, they get distributed and become tradable to early investors or developers, that’s when the supply shock is witnessed.

How Supply & Dynamics Would Get Impacted?

Similarly, when many tokens are unlocked and released in July 2024 into the crypto market, the project supply will increase dramatically. Likewise, if the demand for these released tokens does not advance at the same rate, the excess supply could lead to a drop in asset prices.

Moreover, there happens to be one more drawback to this event in July. If the unlocked tokens belong to project investors waiting for the right time and opportunity to sell those unlocked crypto assets, they might do so.

At last, if the investors decide to sell a big portion of their holdings right after the unlock event, this would intensify the bearish selling pressure on the market.

Here are Some of the Major Crypto Unlocks to Watch Out for this July

According to TokenUnlocks, the large unlocking has been set for July 2024, worth more than $730 Million. These large assets include DYDX, SUI, IO, XAI, IMX, APT, STRK, ARB, APE, AXS, PIXEL, WLD, and ALT.

Among them, ALT has exceeded $125 Million. WLD has started large-scale linear unlocking to commence from July 24th, $18 Million per day, which would be 6.62 million tokens a day.

The XAI plans 72% of its circulation in tokens unlock and could potentially deteriorate massively in its wake by July 9th.

Generally, an unlock of nearly 3% to 4% of the circulating supply is expected to significantly impact the price. The unlocked tokens in the tweet above have almost 5 that would unlock more than 4%. The list represents token unlocks between the 1.68% and 71.59% circulating supply.

Should the Market Brace for Impact?

July could be a rollercoaster month with various crucial developments on the horizon. The ongoing wave of token unlocks could introduce massive volatility into the market.

The large volume of token unlocks can usher the volatility in asset prices, and assets could offer buyers a buy-the-dip opportunity. 

To mitigate the impact of token unlocks on market sentiment, many crypto projects strategically release major positive news around token unlock dates.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Steefan George

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.