- Upcoming token unlocks across several prominent projects may lead to increased market volatility, influencing both liquidity and token prices due to the influx of new tokens into circulation.
- These unlocks present both a challenge and an opportunity for investors to monitor the market closely for potential price adjustments and strategic entry or exit points.
Following a recent CNF update on 3 Crypto Tokens Flashing Strong Buy Signals for September 2024, next week will see significant token unlocks that could impact market dynamics. Token unlocks refer to the release of previously locked tokens, often scheduled to mitigate market pressure and prevent price drops.
However, factors such as liquidity shortages or early investor sell-offs can still affect prices. Here are three major unlocks to watch:
Arbitrum (ARB) – September 16
Arbitrum, a leading Layer-2 Ethereum scaling solution, will unlock 92.65 million ARB tokens on September 16. With a current circulating supply of 3.49 billion ARB, this unlock, valued at $49.87 million, will be distributed among team members, advisors, and investors.
Despite market conditions that saw Arbitrum investors redirect focus to an altcoin achieving 140% returns in September, as reported by CNF, the project, backed by major firms like Lightspeed Venture Partners and Coinbase, could see notable market reactions following this release.
ApeCoin (APE) – September 17
As previously discussed in a CNF post, ApeCoin (APE), tied to Yuga Labs’ Bored Ape Yacht Club (BAYC) ecosystem, will unlock 15.60 million tokens on September 17. With a circulating supply of 674.64 million APE, this event could lead to price volatility, as past unlocks have typically resulted in price declines. Investors should closely monitor this release, as it could influence the token’s value in the near future.
Space ID (ID) – September 19
Following a recent CNF update on SPACE ID 3.0, which unveiled ID Token Staking and game-changing upgrades for its Permissionless Name Service Protocol, Space ID, a project focused on decentralized identity, will unlock 43.38 million ID tokens on September 19. Other upcoming cliff unlocks include Echelon Prime (PRIME), Pixel (PIXEL), Lista DAO (LISTA), and Astar Network (ASTR), with a total value exceeding $116 million.
With a circulating supply of 286 million ID, this unlock is expected to be distributed to early contributors, potentially affecting liquidity and price movements in the market. Keep an eye on this event, as it could lead to shifts in Space ID’s value and market sentiment.
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