This Week's Crypto Market Will Absorb $789.65 Million in Unlocked Tokens

Historically, since unlocks lead to price volatility, there is a risk of the market turning bearish, especially for these tokens.

Several tokens are set to be unlocked this week, with a total value exceeding $789.65 million. Among these tokens, some of the largest allocations will be to Melania, Worldcoin, and Ape.

Historically, token unlocks have been shown to lead to price volatility, and there is a risk of the market turning bearish, especially for the tokens with the largest unlocks.

On Monday, February 17, Tokenomist revealed several popular tokens will see significant token unlocks. One of the unlocks that raises concern is Melania Meme.

The project will unlock $79.63 Million worth of tokens (40.83% of its circulating supply), raising concerns about sales from early holders.

According to Tokenomist, the single unlocking amount in the next 7 days will be greater than $5m, including MURA MELANIA FTN QAI MRS IMX APE ID PIXEL, etc., and the linear large unlocking in the next 7 days includes SOL WLD DOGE TIA AVAX TAO SUI DOT NEAR JTO ENS FIL OM, etc. The… pic.twitter.com/0AG17rryq9

Another notable example is Worldcoin (WLD), which has $45.79 million worth of tokens or 3.64% of its supply. Ape will also unlock 15 million tokens or 2.16% of its supply. Conversely, Jito will unlock 4.2 million tokens or 1.43% of its circulating supply.

Can Token Unlocks Turn the Market Bearish?

Token unlocks can indeed turn the market bearish, as they often lead to increased supply and selling pressure. Recent examples include Sui (SUI) and Optimism (OP), with each experiencing a 5% drop before their token unlocked earlier this month.

Keyrock Research highlights that 90% of token unlocks create negative price pressure, with larger unlocks causing sharper declines and heightened volatility.

These events underscore the importance of monitoring unlock schedules to anticipate market shifts and mitigate risks. Still, not all unlocks lead to price crashes.

However, the effect largely depends on whether insiders sell their unlocked tokens and overall market sentiment. While it is impossible to know if the insiders will sell, it is possible to gauge sentiment.

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