- Investors in the cryptocurrency market should be cautious this week due to significant token unlock events.
- These events could lead to increased selling pressure and notable price fluctuations in the market.
- According to crypto analyst Vinicius Barbosa, over $130 million worth of tokens are set to be unlocked, which has potential market implications.
Discover the top three cryptocurrencies that investors should watch out for this week as significant token unlock events could trigger market volatility.
Significant Cliff Unlock Events in the Crypto Market
According to data from TokenUnlocks, a total of $198.42 million worth of tokens will be unlocked over the next seven days. Remarkably, three of the leading protocols this week account for 69% of the total amount. These projects will release $137.02 million worth of tokens into the market. In total, fifteen projects are set to experience “cliff unlock events” over the coming week.
Noteworthy Token Unlock Event by Ripple
Additionally, on July 1st, Ripple will unlock 1 billion XRP, valued at approximately $470 million, as part of its monthly release schedule. XRP investors should remain vigilant during this period.
Top Cryptocurrency to Watch: Optimism (OP)
Investors should consider avoiding trades in Optimism (OP), a popular layer-2 solution for Ethereum (ETH). On June 30th, the protocol will unlock 31.34 million OP tokens, currently valued at $55.16 million. Interestingly, a similar amount of tokens valued at $80.23 million was unlocked by the network on May 31st.
The monthly token unlock represents an approximate 3% inflation in supply with slight monthly variations. Core contributors to the protocol will receive 16.54 million OP worth $29.11 million, while private investors will obtain $26.05 million. These figures are slightly lower than last month’s distribution of $42.35 million and $37.89 million respectively.
Another Key Cryptocurrency: Sui Network (SUI)
Sui Network (SUI), another notable cryptocurrency, should be avoided due to its recurring monthly token unlocks. Developed by former Meta Platforms engineers, this Layer-1 Blockchain will inflate its supply by 2.7% this month. On July 1st, the protocol will release 64.20 million SUI tokens for private investors, the development team, and the Mysten Labs treasury. Notably, private investors will receive 39.16 million SUI, constituting more than 60% of the total unlock, valued at $54.63 million. This is a significant drop from the previous month’s $70 million valuation, signifying buying power loss due to inflation.
Third Cryptocurrency to Monitor: io.net (IO)
Lastly, io.net (IO) will experience a crucial token unlock event, releasing 7.5 million tokens worth $27.23 million, resulting in an 8% supply inflation. This release constitutes the final noteworthy unlock event for this period.
Conclusion
Cryptocurrency investors need to be aware of these token unlock events and their potential economic impacts on token prices. Increased unlocks can lead to heightened volatility and alter risk-reward ratios unfavorably. The market remains unpredictable, influenced by multiple variables. Therefore, effective risk management and awareness of when to avoid specific cryptocurrencies are essential.
