The crypto market is gearing up for an eventful July with the release of tokens worth a total of $860 million. Around 40 crypto projects will see a portion of their tokens released to the market, an event that could have a significant impact on prices and market dynamics.
Projects in mind
Among the many affected projects, the Xai crypto stands out with a massive unblocking scheduled for July 9th. Approximately 198 million XAI tokens will be released, representing 71.5% of its circulation, with an estimated value of $97 million. These tokens will go to the project team, fund, investors and ecosystem.
Crypto Aptos will follow closely behind with the release of 11.3 million APT tokens on July 12, worth nearly $79 million. These tokens will be distributed to the Aptos Foundation, its community, its core contributors and its investors.
On July 16, Arbitrum plans to release 92.6 million of its ARB cryptocurrency worth $76 million to the project team, investors and advisors. Finally, AltLayer will unlock 684 million ALT tokens on July 25th, representing 45% of its circulating supply and worth approximately $133 million.
Other notable projects include Io.net, Starknet and Sui. Io.net will unlock 7.5 million IO tokens on July 1, representing 8% of its circulating supply and worth $26 million. Starknet will release 64 million STRK cryptocurrency, or 5% of its supply, on July 15th, worth $47 million.
Meanwhile, Sui will release 64 million SUI cryptos on July 1st, representing 2.5% of its circulating supply and worth $56 million.
Implications for the crypto market
Token unlocking consists of releasing tokens whose trading was previously prohibited.
This release may lead to increased selling pressure as a large number of tokens enter the market, which may push prices down. Investors often fear this release and expect prices to fall.
However, not all token unlocks are necessarily negative. Small releases may have minimal impact on prices.
Additionally, according to the annual report from Token Unlocks, tokens increase by an average of 34% after being unlocked for private investors. This shows that unlocking can also provide attractive buying opportunities if market conditions are favorable.
The exact impact of unlocking tokens often remains unpredictable. Although some investors may prepare for a price drop, others see these times as an opportunity to enter the market at lower prices. The inherent volatility of cryptocurrencies means that unlocking can create both risks and opportunities.
The benefits of Bitcoin in this context
Unlike many altcoins, Bitcoin remains a safe haven in the crypto world. Its significant market cap and market leadership make it a more stable option compared to more volatile altcoins.
Investors often view bitcoin as a hedge against the extreme swings seen in newer, less established projects.
Bitcoin continues to enjoy increasing adoption by leading financial institutions and corporations.
This institutional recognition strengthens its position and resistance to market turbulence. In addition, the regulation and financial infrastructure around Bitcoin is evolving to provide additional security for investors.
The Bitcoin blockchain is the oldest and most tested of all. Its security, transparency and decentralization are widely recognized, giving it a clear advantage over other projects that are still in development or less mature. In times of volatility, these characteristics make Bitcoin a more attractive option for investors looking for stability.
Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.