This week, the altcoin market is witnessing significant developments as plans emerge to release approximately 328 million dollars’ worth of tokens into circulation. This move may increase price volatility in the short term. According to Tokenomist data, both collective (cliff) and gradual (linear) release methods are being implemented. Experts emphasize the need for traders to act carefully and cautiously during this process.
Collective Unlocks Could Strain Supply Balance
The collective unlock method often employed in cryptocurrency projects involves the simultaneous release of large amounts of previously locked tokens on specific dates. Notable projects using this method this week include Aptos, Saga, Axie Infinity, Move, and Tensor. For instance, Aptos plans to release around 11.31 million tokens, valued at approximately 49.76 million dollars in the current market. The total market value of this project’s circulating tokens is around 604.79 million dollars.
Saga’s situation is particularly noteworthy, with 133.33 million tokens set to unlock, creating an increase in supply valued at 33.5 million dollars. Similar scale releases are planned across other projects. Such sudden increases in supply could disrupt short-term supply-demand dynamics, potentially exerting downward pressure on prices. It is crucial for traders to reassess their buying and selling strategies during these periods.
Gradual Unlocks May Extend Impact Duration
Some projects prefer a more balanced approach to token releases through gradual unlocks. In this method, tokens are released at specific intervals in smaller quantities. A prominent example is Solana $137, which plans to release approximately 465.77 thousand tokens valued just below 50 million dollars. While the increase in supply is more gradual, it may still create medium-term pressure on prices.
Other projects engaging in gradual release include Worldcoin, Celestia, and Dogecoin $0.00000004172518, with their combined releases reaching a value of 57 million dollars. Although these releases may not create immediate significant impacts on the market, they could lead to instability in price charts. Such developments are critically important, especially for traders engaged in daily and weekly transactions.
Experts Warn of Price Fluctuations
Despite the declining trend in the altcoin market, some technical indicators suggest a potential recovery is on the horizon. Observed low levels in indicators like RSI may signal a possible reversal. This perspective is encouraging for long-term traders. Some investors relying on technical analysis believe that formations ongoing for 1.5 years are nearing completion.
Analyst Moustache suggests that the current price levels present a “generational opportunity” for traders. Jamie Coutts from Real Vision recently stated that he expects a recovery in the altcoin market during this cycle. Coutts believes that projects providing real-world value will gain more prominence during this period. These comments reveal that the release process holds both risk and opportunity for traders.