Altcoins To Avoid Trading Next Week As $270M Token Unlocks Loom (2024)

In the coming week, the crypto market will witness a significant token unlock event, with Sui (SUI) being one of the major tokens affected. The next week will see token unlocks worth $270 million. Moreover, other altcoins like Solana (SOL), Worldcoin (WLD), and Zetachain (ZETA) will also be affected. Hence, traders could avoid trading these tokens in the upcoming week to avert some degree of risk.

Overview of Upcoming Altcoin Token Unlocks

On September 1, 64.19 million SUI tokens will be unlocked, amounting to $51.60 million in value. This release represents 2.47% of the token’s circulating supply. Given the substantial amount of tokens entering the market, SUI could face downward pressure as some investors may choose to sell their holdings. This could potentially lead to a decrease in its market price.

On September 6, ImmutableX (IMX) is set to unlock 32.47 million tokens, valued at $47.41 million, according to TokenUnlock. This unlock accounts for 2.06% of IMX’s circulating supply. The influx of these tokens could create volatility in the altcoin market, as the increased supply may not be immediately met with demand. It could potentially cause a short-term price decline.

ZETA will also experience a notable token unlock on September 1. The unlock will see 53.89 million tokens being released, worth $26.63 million. This represents a significant 15.71% of its circulating supply. The large proportion of tokens being unlocked could lead to substantial market movements, especially if a significant number of holders decide to liquidate their assets.

Taiko (TAIKO) is scheduled to unlock 12 million tokens on September 5, valued at $20.04 million. This release constitutes 19.02% of its circulating supply, making it one of the more impactful token unlocks of the week. The significant increase in supply could potentially destabilize altcoin’s market value, especially if the market is unable to absorb the additional tokens quickly.

Other Tokens Awaiting Unlock

On September 1, dYdX (DYDX) will have 8.33 million tokens unlocked, worth $7.89 million. This unlock represents 3.67% of its circulating supply. Although the percentage of circulating supply being unlocked is lower compared to some other tokens, DYDX could still experience price fluctuations due to the sudden increase in supply.

Lastly, Mode (MODE) will undergo a massive token unlock on September 6, with 500 million tokens being released into the market. This unlock is valued at $6.45 million and represents a staggering 38.46% of its circulating supply. The sheer volume of altcoin being unlocked could result in significant selling pressure, making MODE particularly vulnerable to price volatility during this period.

In addition to these large token cliffs, several top altcoins will experience daily linear unlocks, further contributing to the market’s dynamics. For example, Solana will see daily releases of 66.54K tokens, with a daily value of $9.31 million. Whilst, Polkadot (DOT) will experience daily unlocks of 441.35K tokens, worth $1.88 million. NEAR Protocol (NEAR) and SEI will also see daily token unlocks, which could add to the overall market supply and potentially influence prices.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.