Altcoins
Unlocking of crypto tokens could lead to market correction
The current crypto market bull cycle might be shorter than previous ones and is unlikely to end with a big altcoin rally.
As analysts from 10x Research reported, risky cryptocurrency funds, which will concentrate a significant share of coins in the future, may be to blame.
Beware of token unlocks. Will VC funds shorten this Altcoin cycle?
👇1-12) The current cryptocurrency bull market cycle may be shorter than previous ones and is unlikely to result in a large altcoin rally. Are crypto venture funds to blame?
👇2-12)… pic.twitter.com/nICNYmtDyK
– 10x Research (@10x_Research) May 8, 2024
“Despite high daily trading volumes of over $100 billion and rapid development and updates of crypto projects, there are significant constraints on the industry’s growth potential.”
10x Research Analysts
According to analysts, large volumes of almost $2 billion worth of tokens unlocked over the next 10 weeks could negatively impact altcoins.
TokenUnlocks data shows that the largest upcoming unlock will take place on May 15 from the layer 2 crypto derivatives platform Aevo. Developers will release 828.93 million AEVO, or approximately $1.17 billion. Of the total supply of 1 billion coins, 18.5% will be sent to private investors.
A smaller release of $39.78 million in WLD tokens from Sam Altman World Currency project is planned for July 24. This will represent 0.05% of the total token supply or 2.4% of the current number of coins in circulation.
On May 12, Aptos will release 11.31 million APT, valued at $101.67 million, or approximately 2.6% of the circulating supply.
In April, experts from 10x Research warned that the market was reaching a critical inflection point that could lead to a major correction. The company called “unexpected and persistent” inflation the main trigger.
With fewer than three declines expected in the bond market and the 10-year Treasury yield above 4.5%, risky assets will likely see a repricing.