This week, three cryptocurrencies will unlock over $130 million in tokens, and cryptocurrency traders should avoid heavy exposure to these tokens. These unlocks have the potential to flood the market, leading to increased selling pressure and significant price fluctuations.
On June 26th, Finbold retrieved data from TokenUnlocks.app, which showed that there is $198.42 million in token unlocks within a seven-day cliff unlock. It is worth noting that three major leading protocols will release $137.02 million worth of tokens this week, accounting for 69% of the total tokens. Fifteen projects make up the “Cliff Unlocks for the Next Seven Days.”
Furthermore, Ripple will unlock 1 billion XRP on July 1st, worth $470 million monthly. Finbold has reported on Ripple’s unlock in a unique report released today.
Firstly, investors should avoid trading Ethereum’s popular Layer 2 Optimism (OP) as potential sell-offs loom. On June 30th, the protocol will unlock 31.34 million OP tokens, currently valued at $55.16 million. Interestingly, according to Finbold, the network unlocked the same number of tokens worth $80.23 million on May 31st.
The OP unlock represents nearly 3% of the supply inflation, repeating monthly with slight variations. Core protocol contributors will receive 16.54 million OP, worth $29.11 million, while private investors will receive $26.05 million to achieve their monthly profits relative to retail buyers. The nominal values received last month were $42.35 million and $37.89 million, respectively.
Another cryptocurrency to avoid trading due to monthly token unlocks is Sui Network (Sui). The competitor to Meta Platforms (NASDAQ: Meta), developed by former Meta Platforms engineers, will see a 2.7% increase in its monthly supply this month.
On July 1st, the protocol will unlock 64.20 million SUI for private investors, development teams, and the Mysten Lab treasury. It is worth noting that private investors will receive 39.16 million SUI, accounting for over 60% of the total unlock value of $54.63 million.
It is worth noting that the same number of tokens worth $70 million was unlocked last month, demonstrating purchasing power erosion due to inflation.
Lastly, the final significant unlock comes from io.net (io), with the community releasing 7.5 million tokens worth $27.23 million, with a supply inflation rate of nearly 8%.
Cryptocurrency traders will attempt to speculate on the economic impact of these unlocks and sell-offs on prices, which could increase volatility and worsen potential risk-return ratios. The market is uncertain and influenced by various factors, requiring proper risk management and learning when to avoid trading specific cryptocurrencies.
Disclaimer: The content on this website should not be considered investment advice. Investments are speculative, and your capital is at risk when investing.