Although cryptocurrencies are now experiencing a correction phase, the occurrence of supply events worth billions of dollars might potentially delay any significant recovery. The crypto analytics firm 10x Research reported on Wednesday that a rapid sequence of token unlocks totaling over $2 billion over the next ten weeks may decrease the market for cryptocurrencies. Large token unlocks in cryptocurrencies are often negative occurrences as they involve moving assets that were previously locked up in vesting contracts to team members, organizations, and early investors, including venture capital firms. This occurs because they augment the supply by dispersing assets that were previously immobilized. The report indicates that a total of $97 million worth of aptos (APT), $79 million worth of starkware (STRK), $94 million worth of arbitrum (ARB), $53 million worth of Immutable X's (IMX), $330 million worth of Avalanche's (AVAX), $64 million worth of optimism (OP), $28 million worth of PRIME, nearly $1 billion worth of sui (SUI), $48 million worth of ethena (ENA), $171 million worth of Altlayer's ALT, and $135 million worth of XAI tokens will be introduced into circulation within the next two months. The research document suggests that venture capital investors may feel compelled to secure their recent profits, thereby limiting the potential growth of tokens that have shown strong momentum, particularly those that have become available for unlocking. Not only altcoins, but also other cryptocurrencies are experiencing price pressure. As per a report published on Tuesday by K33 Research analyst Velte Lunde, creditors of the Earn program on the cryptocurrency exchange Gemini and the now-defunct cryptocurrency marketplace Mt. Gox will get over eleven billion dollars' worth of bitcoin (BTC-related assets). Acquire further knowledge by engaging in the act of reading: K33 A study cautions that the forthcoming $9 billion disbursement from Mt. Gox has the potential to impact the value of bitcoin. Lunde predicts that in the coming months, there will be repeated instances of fear, uncertainty, and speculation in the cryptocurrency market, generally referred to as crypto FUD. An analyst suggested that the FTX repayments might potentially alleviate the impact of the upcoming supply events in the market. Arthur Cheong, the founder and chief investment officer of DeFiance Capital, estimates that about $14-$16 billion in U.S. dollars may be distributed to creditors, with a substantial percentage of these funds potentially finding their way back into the cryptocurrency market. This is subject to the approval of the bankruptcy court. "Anticipate a minimum of $3-$5 billion of cryptocurrency-based liquidity to be reintroduced into the market," Cheong declared in a post published on X on Wednesday.
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