$2.6B Worth Token Unlock Set to Shake Crypto Market in January

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As I step into 2025, I find myself preparing for a significant tide of token unlock events in the cryptocurrency market. Scheduled from January 13th to the 19th, these events are estimated to release over $2.6 billion worth of tokens into circulation. These unlocks signal the conclusion of vesting periods for numerous blockchain projects, and could potentially redefine market dynamics.

On January 18, as per TokenUnlocks’ data, Ondo Finance is set to introduce approximately 1.94 billion ONDO tokens into circulation, giving the token a total value of around $2.42 billion. Given that the current circulating supply stands at 1.38 billion and the market capitalization is $1.8 billion, this release may substantially impact the balance between the token’s supply and demand.

[ONDO]
$1.30

24h volatility: 4.2%

Market cap: $1.88 B

Vol. 24h: $174.04 M

On January 16, notable releases include a portion of Arbitrum’s circulating supply valued at $69.32 million, as well as $27.55 million worth of STRK tokens. The value of one STRK token is approximately $0.44, and the daily volatility is 1.2%. On the same day, the market cap of STRK stands at $1.07 billion, with a trading volume of $61.72 million in the last 24 hours.

Additionally, SEI will unlock $21.06 million in tokens. The price of one SEI token is approximately $0.39, and its daily volatility is 1.5%. Its market cap is currently at $1.65 billion, with a trading volume of $122.95 million in the last 24 hours.

Lastly, Ethena’s ENA will contribute $11.98 million to the market. The value of one ENA token is approximately $0.96, and its daily volatility is 2.6%. Its market cap stands at $2.92 billion, with a trading volume of $579.50 million in the last 24 hours.

As a crypto investor, by January 17th, I’m looking forward to the unlocking of significant amounts of tokens from two projects: Apecoin’s APE and Echelon Prime’s PRIME. Specifically, APE will release $17.32 million, while PRIME will unlock $10.07 million worth of tokens. Additionally, there are smaller releases planned for CLOUD ($8.28 million), PIXEL ($7.68 million), and EIGEN ($4.16 million) tokens. The 24-hour volatility for these coins ranges from 0.6% to 1.9%, with market caps varying from $0.15 to $3.31, and the total volume traded in the last 24 hours being between $27.06 million and $79.98 million.

As an analyst, I’m anticipating that the upcoming wave of unlocks within the next seven days could potentially be the most significant one until mid-March. This scenario might lead to increased volatility not only in the directly impacted tokens but also in the broader market.

Market Impact of Token Unlock Event

Unlocking token events can bring both advantages and difficulties. A surge in tokens tends to cause price fluctuations, typically pushing prices down due to many token holders choosing to sell for profit or to limit losses. Moreover, these events can have a domino effect on the entire cryptocurrency market.

Investing in cryptocurrencies that have robust foundations and support from their communities could mean seizing a potential bargain during temporary price drops, especially if you’re thinking long-term. Currently, the Crypto Fear & Greed Index stands at 50, indicating that investor feelings are neither fearful nor greedy – they’re neutral.

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2025 might see a surge in altcoins as people are discussing, given Donald Trump’s anticipated inauguration on January 20. Renowned for his pro-crypto views, there’s optimism about policies he may implement upon his return to office that could stimulate growth within the digital assets market.

At present, the total value of the cryptocurrency market is approximately $3.3 trillion, representing a 1% increase over the past day, according to CoinMarketCap’s data. Given that Bitcoin has experienced selling pressure following its surge in mid-December, other digital currencies, known as altcoins, have also declined. This situation sets them up for potential recovery.

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2025-01-10 12:37