Optimism, Sui, Ethena Braces For Massive Liquidation, Here’s Why

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As a researcher with extensive experience in the cryptocurrency market, I cannot help but express concern over the imminent token unlocks for Optimism (OP), Sui (SUI), and Ethena (ENA). The collective release of approximately $118 million worth of coins is expected to significantly impact these tokens’ prices, potentially leading to massive liquidations.

In the upcoming days, it is expected that the cryptocurrencies Optimism (OP), Sui (SUI), and Ethana (ENA) will experience significant sell-offs due to imminent large-scale token releases.

As a researcher studying the cryptocurrency market, I can tell you that approximately $118 million in coins will become accessible soon, consisting of OP, SUI, and ENA tokens. These “cliff unlocks,” as they’re called, may lead to substantial sell-offs due to the increased risk of price drops.

Significantly, the term “token unlocks” refers to the process of making available previously restricted tokens for trading on the open market. This action increases the circulating supply of the token, which can have a detrimental effect on its economic structure, known as tokenomics.

So, let’s look into the upcoming token unlocks for OP, SUI, and ENA tokens.

Optimism (OP)

With a market value of $2.04 billion, Optimism – the Ethereum L2 platform – is preparing for the release of 31.34 million OP tokens on June 30th. This equates to approximately 2.88% of the coin’s total circulating supply and holds a value of around $56.73 million.

Based on the data from the Token Unlocks App, approximately one quarter (25%) of the total locked tokens have been released so far. This equates to around 1.13 billion OP.

During the present time, the OP‘s price rose by 0.58%, reaching a value of $1.83. However, an influx of supply is predicted to occur soon, potentially leading to a price decrease.

Sui (SUI)

On July 1, there will be a release of approximately 69.3 million SUI tokens, which represents around 2.88% of the total market supply. The monetary value of this unlock is estimated to be about $57.37 million.

As an analyst, I’ve observed that approximately a quarter (24%) of the total Sui tokens currently locked on the blockchain have been unlocked so far. This translates to a substantial amount of 2.43 billion SUI being in circulation.

The Sui network boasts a market value of approximately $1.99 billion, while its cryptocurrency was priced at around $0.8216 yesterday. It’s important to mention that a more significant drop could be on the horizon due to an upcoming event causing increased uncertainty.

Ethena (ENA)

As a researcher examining Elrond Network Asset (ENA), I’m preparing for an event where approximately 14.89 million coins will be unlocked on June 30th. This represents around 0.92% of the total circulating supply, equivalent to a monetary value of roughly $8.10 million.

Intriguingly, only 8% of the locked tokens have been unlocked to date, worth 1.25 billion ENA.

Over the last 24 hours, the price of Ethana (ENA) dipped by 6.26%, now trading at $0.5465. The token’s market capitalization stood at an impressive $830.54 million. Similar to other mentioned cryptocurrencies, there is a potential risk for ENA’s price to decrease further, which could lead to forced sales.

It’s important to note that coins experience significant price instability when more than 1% of their total circulating supply is unlocked as token rewards. This phenomenon is closely monitored by crypto market participants, who eagerly anticipate any shifts in price.

In the upcoming days, coins such as Galxe (GAL), ZetaChain (ZETA), and Manta Network (MANTA) are anticipated to undergo a setback. Specifically, Galxe will face an unlock event releasing 2.6% of its current supply. On the other hand, ZetaChain and MANTA will encounter unlocks amounting to 1.9% and 0.6% of their respective circulating supplies.

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2024-06-28 18:51