This week, three cryptocurrencies will unlock tokens worth over $130 million, and crypto traders should avoid heavy exposure to these tokens. The unlocking of these tokens could flood the market, leading to increased selling pressure and significant price fluctuations.
On June 26th, Finbold retrieved data from TokenUnlocks.app, showing that a total of $198.42 million will be unlocked in the next seven days. Notably, three major protocols will release tokens worth $137.02 million, accounting for 69% of the total tokens. 15 projects make up the “Next 7D Cliff Unlock.”
Additionally, Ripple will unlock 1 billion XRP on July 1st, worth $470 million monthly. Finbold has reported on Ripple’s unlocking in a unique report released today.
Firstly, investors should avoid trading Ethereum’s popular second layer Optimism (OP) ahead of potential sell-offs. On June 30th, the protocol will unlock 31.34 million OP tokens, currently valued at $55.16 million. Interestingly, the network unlocked the same number of tokens worth $80.23 million on May 31st.
The unlocking of Optimism represents nearly 3% of the supply inflation, which will be repeated monthly with slight variations. Core protocol contributors will receive 16.54 million OP, valued at $29.11 million, while private investors will receive $26.05 million to achieve their monthly profits compared to retail buyers.
Another cryptocurrency to avoid trading due to monthly token unlocks is Sui Network (Sui). Developed by a former Meta Platforms (NASDAQ: Meta) engineer, the first-layer blockchain competitor’s supply will increase by 2.7% this month.
On July 1st, the protocol will unlock 64.2 million SUI for private investors, the development team, and the Mysten Labs treasury. Private investors will receive 39.16 million SUI, accounting for over 60% of the total unlocking value of $54.63 million.
Finally, the last important unlock comes from io.net (io), with the community releasing 7.5 million tokens worth $27.23 million, with a supply inflation rate approaching 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, 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 construed as investment advice. Investing is speculative, and your capital is at risk when investing.
