📉Potential Crash Incoming As Over 20% of Top Cryptos About to Unlock and Unload on the Market⚡

A fresh study on the top 300 cryptos by market cap reveals that more than a fifth of these coins are sitting on a heap of tokens yet to hit the market.👀

This discovery is crucial for both investors and analysts, as it could shake up prices and investor confidence.

Based on data from CoinGecko as of May 8, 2024, the analysis left out stablecoins and wrapped assets, focusing on the market cap to fully diluted valuation (FDV) ratio.

CoinGecko clarified, "We defined low-float crypto as having a market cap to FDV ratio of 0 to 0.49, high float crypto as ratios of 0.50 to 0.99, and only crypto with a ratio of 1 as fully diluted."

Alarmingly, low-float cryptos make up 21.3% of the top 300 coins, hinting at a flood of new supply on the horizon. Among them, Worldcoin takes the cake with the lowest ratio at 0.02, followed by Cheelee (CHEEL) at 0.06, Starknet (STRK) at 0.07, and Saga (SAGA) at 0.09. These coins, all launched in 2023 or 2024.

This trend of low float is mainly seen in cryptos introduced in the past four years. In fact, 54 out of 64 low float large-cap cryptos were born during this period. This surge of new projects suggests a bustling crypto scene and could hint at shifts in the market as these tokens hit the market.

Looking ahead, the market braces for the impact of upcoming token unlocks.

For instance, Token Unlocks data shows that on May 12, Aptos will unleash 11.31 million APT tokens, worth almost $100 million, making up 2.64% of its circulating supply. On May 16, Arbitrum will release 92.65 million ARB tokens, valued over $96 million, comprising 3.49% of its circulating supply.

These unlocks could create heavy selling pressure on these tokens.

Also, about $3.58 billion worth of tokens are set to unlock this month across various projects. This hefty sum underlines the potential influence of these unlocks on the broader market, possibly spiking volatility.

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