Inflation is increasing globally and the tightening monetary policies of central banks have been pressuring the risk markets for a long time. In addition, altcoins have their own inflation. For example, AVAX has fallen below $9 due to significant token unlockings it has made this year.
Altcoin Token Unlockings
Cryptocurrency investors consider circulating supply a crucial matter, and token unlockings increase this supply. If token unlockings are constant and exceed the new demand, it causes the price to erode due to inflation. Moreover, in bear markets where volumes shrink, token unlockings mean millions of dollars in selling pressure.
Even with a few million dollars in sales, altcoin prices can be moved close to double digits these days. This results in prices rapidly dropping as institutional investors or altcoin teams start selling their unlocked assets. We recently witnessed how quickly the price of AVAX fell with these token unlockings.
Upcoming token unlockings can trigger price declines for two reasons. The first reason is the increase in circulating supply and the availability of new supply for sale, which causes the price to fall. The second reason is the sales made by investors concerned about the first reason and their decisions to postpone purchases.
October Altcoin Token Unlockings
As we do every Sunday, we have announced the important developments that will take place in the next 7 days. In these weekly news, we also emphasize token unlockings. However, there are also token unlockings that will occur in 20-25 days. Being aware of these in advance can be useful for investors.
In the first week of October, there will be token unlockings for SUI and IMX Coin. The largest token unlocking in terms of USD will be carried out by the AXS Coin team on October 20th. You can see the details of the planned token unlockings for 6 cryptocurrencies in the table below.
APE, AXS, and SUI token unlockings are at much more significant levels compared to the total supply. If the overall market sentiment does not remain positive, token unlockings will favor bears. This may cause the relevant altcoins to lose important support levels on these dates.
The price of Bitcoin continues to stay above $27,000 today.
