Yes, approximately 44 billion dollars, and this figure is much higher than the (approximately) 13 billion dollars that have entered spot BTC ETFs to date. There has been a topic discussed more loudly in the cryptocurrency markets for a while. That is the tokens that start with very low circulating supply to increase market value and make life difficult for investors.
High Risk in Cryptocurrencies
A report we published a while ago stated that a significant portion of the new altcoins listed by the Binance exchange are currently in loss. Despite being newly listed, these altcoins started with low supply and frequently unlocked tokens, turning individual investors into a source of exit liquidity.
When institutions invest in projects in the early stages, the tokens they deserve (tokens received in return for early-stage investments at low prices) are unlocked. The demand that cannot keep up with this unlocking speed constantly causes graphs to move negatively or horizontally.
Investors, especially those new to cryptocurrencies, may pay a high price if they choose altcoins without serious research on circulating and locked supply. This could trigger bigger problems with the increase in the proportion of short-term investors (those who buy and sell immediately when they see a reasonable profit).
44 Billion Dollar Altcoin Unlocking
Throughout 2024, there will be token unlockings worth 44 billion dollars. We will see continued token unlockings in altcoins in June, including Altlayer (ALT), Pixels (PIXEL), and ApeCoin (APE). We are all aware of the massive unlockings of altcoins like AVAX and DYDX. Cryptocurrency analyst Alex Wacy said;
“According to this calculation, it seems that a significant number of tokens will enter the market this year. If sufficient capital does not come in, the selling pressure may increase for many. Be prepared for more volatility, an increase in supply, strategic trading opportunities, changes in sentiment, and the long-term effects of new tokens flooding the market. Adapt your approach, follow price fluctuations, and determine the most suitable selling points to take advantage of potential gains.”
Additionally, some altcoins have the potential to stand out by creating demand above supply and positively differentiate themselves in the process.
