#Altcoin Rally Cools as Massive $650M Worth of #Token Unlocks #LOOMđ„đ„đ„đ„ Over #Crypto Market.
According to The Tie's prior study this year, significant unlocking events typically result in price reductions as supply increases faster than investor demand for the asset.
The cryptocurrency tokens DYDX, OP, and SUI underperformed the larger Coindesk Market Index and fell precipitously ahead of their significant token unlocks.
A digital asset's supply is increased by unlocks, which also enable token sales by early investors.
A number of significant alternative cryptocurrencies had a decline on Monday due to significant token unlocks, which dragged on prices during a generally bad day for the overall crypto market. These cryptocurrencies included native tokens of dYdX (DYDX), Optimism (OP), and Sui (SUI).
According to data from Token. Unlocks and CryptoRank, the number of altcoins will increase by approximately $650 million this week.
DYDX will record roughly $480 million worth of tokens in its circulating supply, nearly doubling the current amount of tokens in the market. OP, SUI, Axelar (AXL), Immutable X (IMX) 1inch (1INCH), and Hedera (HBAR) also have big unlocks scheduled in the coming days.
