- The altcoin market is bracing for significant changes as over 40 projects prepare to unlock approximately $755 million worth of tokens.
- This massive influx of tokens could lead to noteworthy price corrections, especially with heavy sell-offs anticipated.
- Just within the first week of July, about $100 million in tokens is set to flood the market, raising concerns among investors.
Discover the upcoming altcoin token unlocks this July and understand the potential market impact.
Aptos (APT) Token Unlock: A Closer Look
Aptos, a Layer-1 Blockchain engineered for scalability, security, and reliability, is about to execute another scheduled token unlock. With aims to enhance transaction speeds and lower costs, Aptos positions itself as a prime platform for various decentralized applications. In May, the project raised $101 million, and in June, it garnered another $102 million. The next significant unlock on July 12 will release 11.31 million APT tokens, valued at $77 million. This allocation represents 2.49% of the circulating supply and is divided among the foundation, community, core contributors, and investors as follows:
- Foundation: 1.33 million APT tokens, worth approximately $9.19 million.
- Community: 3.21 million APT tokens, worth around $22.12 million.
- Core Contributors: 3.96 million APT tokens, valued at $27.27 million.
- Investors: 2.81 million APT tokens, worth $19.35 million.
The recent price trend for APT has been notably volatile, dropping from $17.63 on April 1 to $6.99 on June 28, representing a 60% decline over three months. Despite these fluctuations, Aptos holds long-term potential, evidenced by its recent partnership with Alibaba Cloud to launch Alcove, an initiative aimed at strengthening Japan’s web3 ecosystem. This collaboration resulted in a 2% price increase for APT shortly after the news broke. For investors, the upcoming token unlock could exert downward pressure on prices in the short term, but the focus should remain on long-term strategic partnerships and developments.
Arbitrum (ARB): Preparing for Major Unlock
Next on the list is Arbitrum, known for its Layer 2 scaling solution designed to enhance Ethereum’s transaction speed and reduce costs using optimistic rollups. In May, Arbitrum released $95 million worth of tokens, followed by $105 million in June. Scheduled for July 16, the next unlock will distribute $75 million worth of tokens to the team, advisors, and investors:
- Team and Future Advisors: 56.13 million ARB tokens, valued at $44.96 million.
- Investors: 36.52 million ARB tokens, worth $29.25 million.
When Arbitrum initially released 1.1 billion ARB tokens worth $2.32 billion on March 16, the token’s price plummeted from $2.27 on March 8 to $0.7971 at the time of writing—a staggering 63% drop. Despite these challenges, Arbitrum’s proposed “Timeboost” policy could rejuvenate interest in the platform by optimizing transaction sorting, potentially increasing user activity. Although the upcoming token release may induce short-term turbulence, this development could pave the way for a more efficient user experience and bolster long-term growth.
AltLayer (ALT): Anticipating the Largest Unlock
Finally, AltLayer, a decentralized protocol, is poised for a substantial token release on July 25, unlocking 684 million ALT tokens valued at around $125 million. These tokens will be allocated across various categories, including team, investors, advisors, protocol development, ecosystem/ community, and treasury as outlined below:
- Team: 188 million ALT tokens, valued at $31.67 million.
- Investors: 308 million ALT tokens, worth $51.88 million.
- Advisors: 83 million ALT tokens, valued at $13.98 million.
- Protocol Development: 35.42 million ALT tokens, worth $5.97 million.
- Ecosystem & Community: 25 million ALT tokens, valued at $4.21 million.
- Treasury: 44.79 million ALT tokens, worth $7.54 million.
Since the release of $20 million worth of tokens on June 25, ALT has depreciated by over 10%, suggesting that the forthcoming unlock could similarly impact its price. It’s crucial to monitor how these token movements influence market behavior amid broader ecosystem advancements.
Conclusion
The anticipated token unlock events from Aptos, Arbitrum, and AltLayer are set to introduce significant volumes of tokens to the market. While such releases may pressure short-term prices, they also underscore the dynamic nature of the cryptocurrency landscape, with ongoing developments and partnerships paving the way for potential long-term growth. Investors should remain vigilant and consider both immediate and future market implications.
