Many major cryptocurrencies, including native tokens of dYdX (DYDX), Optimism (OP), and Sui (SUI), fell as major token unlocks opened on Monday.
After Lock Openings, Cryptocurrencies Declined
According to data from Token.Unlocks and CryptoRank, altcoins are facing an increase of approximately $650 million in supply during this week.
Unlocking tokens means an increase in the supply of the asset, releasing coins through a vesting period, including to early investors.
According to a study by crypto analysis firm The Tie earlier this year, major unlock events often lead to price declines due to an increase in supply outstripping investor demand for the asset.
DYDX will add approximately $480 million worth of tokens to its circulating supply, nearly doubling the amount of tokens available in the market.
OP, SUI, Axelar (AXL), Immutable X (IMX), 1inch (1INCH), and Hedera (HBAR) also have major unlocks planned in the coming days.
According to CryptoRank data, Axelar (AXL) is down 10% in the last 24 hours as approximately $18 million worth of tokens, including early investors, were added to its supply, roughly 5% of the market cap, during the scheduled monthly token unlock on Monday.
DYDX fell 7% during the same period before the launch of $480 million worth of tokens on December 1.
OP is down nearly 6% as $40 million worth of tokens are set to be released on November 30. SUI fell 8.8% on the day as its supply increased by $48 million over the week.
As Bitcoinsistemi.com, we write weekly lock openings every weekend.
*This is not investment advice.