Arbitrum, Optimism, Avalanche, and Others to Unlock $2.6B in Tokens This November

by

As a seasoned crypto investor with a few gray hairs to show for it, I can’t help but feel a mix of excitement and trepidation as we approach November. The upcoming token unlocks across major projects like Arbitrum, Optimism, Avalanche, and others are nothing short of monumental, totaling an impressive $2.6 billion.

Preparations are underway for a substantial influx of tokens worth around $2.6 billion into the cryptocurrency market, as significant projects such as Arbitrum, Optimism, and Avalanche plan to unleash their locked assets in November. This release signifies the conclusion of each project’s vesting phase, which could influence the broader market trends.

As per Tokenomist’s (previously known as Token Unlocks) data, the token unlock schedule for November encompasses a variety of blockchain layers – from layer-1 to layer-2, decentralized finance platforms, and meme projects. These releases will happen at varying timeframes.

Major Projects Releasing Tokens in November

This month’s token releases consist of two types: “cliff” and “linear.” In the case of cliff releases, all digital assets are revealed at once, while in linear releases, tokens are slowly distributed over a period. Out of the $2.6 billion total, roughly $900 million will be made available instantly, while around $1.7 billion will be doled out gradually. It’s worth mentioning that a memecoin project like Memecoin (MEME) will employ both methods when releasing its tokens.

In November, the project plans to re-introduce around 3.45 billion units of their native token, valued at roughly $37.8 million, into the market. These tokens were previously set aside as rewards for users, distributed through an airdrop.

Starting from the initial distribution, an extra 10 million MEME tokens will be made available every day through a linear method, which distributes tokens to participants. At the present price of $0.010 for each MEME token, this daily release amounts to approximately $117,000 in increased supply on a daily basis.

Alongside Memecoin, the Layer-1 blockchain Aptos is set to distribute approximately 11.31 million APT tokens, valued at around $93 million according to Tokenomist’s data. This distribution will be split amongst key project contributors (worth about $32 million), the community ($26 million), the foundation ($11 million), and investors ($23 million).

More Token Unlock Events

Regarding Avalanche (AVAX), the token unlock schedule for November reveals that the project will distribute approximately 1.67 million AVAX tokens, equivalent to around $39 million. These tokens are earmarked entirely for its foundation. Being a notable layer-1 blockchain, the Avalanche foundation is anticipated to employ these tokens to foster network development and expansion plans.

With its launch, there might be a bit of selling activity expected, mainly from individuals aiming to profit from the token’s current pricing levels.

Beyond the Layer-1 blockchains, projects such as Optimism (OP), a scalability solution on the Ethereum network, intend to release 31.4 million OP tokens valued at approximately $44 million. The majority of these tokens have been earmarked for investors and key contributors.

92.65 million ARB tokens, equivalent to around $45 million, are set to be distributed by Arbitrum (ARB), a secondary network on Ethereum. These tokens are earmarked for the project’s development team, advisors, and investors.

After its significant release of over 1 billion ARB tokens valued at approximately $2.32 billion in March, Arbitrum’s token price has been decreasing steadily. At the moment, the digital asset is being traded around $0.48, a drop from its record high of $2.39 achieved in January.

Potential Impacts on the Crypto Market

In November, approximately $2.6 billion of various digital assets will be introduced to the market. This influx could have a significant effect on token prices, investor attitudes, and market fluidity. Previously, large releases of tokens often lead to increased selling pressure because early investors and contributors may choose to sell their holdings, especially in volatile market conditions.

Although additional releases could increase market liquidity, they might also cause price instability, particularly if there’s not enough demand to balance the new supply. Experts advise investors to be vigilant because the upcoming period could witness significant changes in these projects, which may impact investment tactics within these projects as well as broader market patterns.

Read More

2024-11-04 15:53