Altcoins To Avoid Trading Next Week As $270M Token Unlocks Loom

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As a seasoned crypto investor with a knack for navigating the stormy seas of digital currencies, I find myself treading cautiously amidst the imminent token unlock events looming on the horizon. The coming week could be a rollercoaster ride, with significant token releases from Sui, ImmutableX, ZETA, and others.

Over the next seven days, a major token release event is expected in the cryptocurrency market, impacting Sui (SUI) significantly among others. This event is set to unlock tokens valued at approximately $270 million. Additionally, altcoins such as Solana (SOL), Worldcoin (WLD), and Zetachain (ZETA) will also be affected. As a result, it might be wise for traders to steer clear of these tokens for the time being to minimize potential risks.

Overview of Upcoming Altcoin Token Unlocks

On September 1st, approximately 64.19 million SUI tokens will be made available, which equates to around $51.60 million in value. This release represents about 2.47% of the token’s current supply that is in circulation. With such a significant number of tokens entering the market, there could be increased selling pressure on SUI. This might result in a potential drop in its market price due to some investors deciding to offload their holdings.

Starting on September 6th, approximately 32.47 million ImmutableX (IMX) tokens, valued at roughly $47.41 million, will become available, as per TokenUnlock’s reports. This release represents around 2.06% of the current circulating supply of IMX. The sudden introduction of these tokens might stir up turbulence in the altcoin market since there may not be an immediate demand to match the increased supply. Consequently, it could lead to a temporary price drop.

On September 1st, ZETA is set for a sizable token release event, unveiling approximately 53.89 million tokens valued at around $26.63 million. This represents a substantial 15.71% of its current supply in circulation. The sizeable quantity of tokens being made available could potentially trigger considerable fluctuations in the market, particularly if many token holders decide to sell their assets.

12 million TAIKO tokens, worth approximately $20.04 million, are set to be released on September 5. This accounts for around 19.02% of its total circulating supply, making it one of the more notable token unlocks this week. The surge in available tokens may cause turbulence in the altcoin market, particularly if the market finds it difficult to assimilate the newly released tokens swiftly.

Other Tokens Awaiting Unlock

Starting on September 1st, dYdX will release 8.33 million tokens worth approximately $7.89 million. This release represents around 3.67% of its total circulating supply. While this percentage is lower than some other tokens, it’s important to note that the sudden increase in supply could potentially cause price fluctuations for dYdX.

In summary, the cryptocurrency known as MODE is set to have a large token release on September 6, totaling 500 million tokens. This event carries a market value of approximately $6.45 million and accounts for an impressive 38.46% of its current circulating supply. The substantial amount of altcoin being made available could lead to increased selling pressure, potentially making MODE susceptible to price fluctuations and volatility during this timeframe.

As an analyst, I’d like to highlight a noteworthy aspect in the crypto market: prominent altcoins are undergoing linear token releases on a daily basis, thereby affecting the market’s movement. For instance, Solana is set to release approximately 66,540 tokens each day, equating to a value of around $9.31 million. Similarly, Polkadot (DOT) will witness daily unlocks amounting to 441,350 tokens, equivalent to roughly $1.88 million. Additionally, NEAR Protocol (NEAR) and SEI are also subjected to daily token releases, which could potentially increase the market’s supply and impact prices.

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2024-08-31 23:58