The recent struggles of Arbitrum following its major token unlock serve as a cautionary tale for other tokens with upcoming unlocks.
As we approach October 2024, a significant unlock event is on the horizon, with $TIA leading the pack at $925 million, followed by other tokens totaling $474 million. While this could present a growth opportunity, it’s crucial to recognize the potential risks.
The last major token unlock we saw was with Arbitrum, and it’s been struggling ever since, hitting all-time lows. This could be a warning sign for other tokens with upcoming unlocks
Looking at October 2024, there's a significant unlock event on the horizon, with $TIA leading at… pic.twitter.com/9GqaHNT9wk
— Token Unlocks (@Token_Unlocks) August 23, 2024
Are Token Unlocks Bullish?
The influx of new tokens will require substantial liquidity to absorb, which may lead to increased selling pressure as these tokens seek out liquidity. The broader market will need to step in to support this increased supply, and it’s essential to think critically about the potential market effects.
The notion that “unlocks are bullish” is not always accurate and can sometimes be driven by those looking to exploit your liquidity. As we approach these unlock events, it’s vital to remain vigilant and consider the potential implications.
In the coming week, several tokens are set to unlock, including $SUI, $OP, $ZETA, $DYDX, $YGG, $PRIME, and $ENA, with a combined value of $164.2 million. While some may view these unlocks as a buying opportunity, it’s crucial to approach with caution and consider the potential market dynamics at play.
🔓 Weekly Cliff Unlocks : 26 Aug -1 Sep 24 🔓
🔥 $ 164.2m 🔥
🌟 Unlock Highlights 🌟$SUI (2.47%) – $54.6m$OP (2.64%) – $47.3m$ZETA (15.71%) – $30.3m$DYDX (3.67%) – $9.4m$YGG (3.71%) – $5.7m$PRIME (1.68%) – $4.9m$ENA (0.82%) – $4.78m
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( % of cir. supply) pic.twitter.com/lL08AG4dQV— Token Unlocks (@Token_Unlocks) August 23, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.