The altcoin market is set for a highly dynamic week due to significant token unlocks across various projects, amounting to a total value of $3 billion. These unlocks are expected to increase supply pressure, resulting in heightened volatility within the market.
Token Unlocks to Significantly Boost Supply
According to Tokenomist data, projects including ONDO Finance will see token unlocks reaching a total volume of $3 billion. This marks the highest weekly token unlock since November 2024.
A substantial portion of this is attributed to the ONDO token, with 1.94 billion ONDO tokens scheduled for release on January 18. The total value of these unlocked tokens is estimated at $2.23 billion, representing over 130% of ONDO’s current circulating supply. Given an average daily trading volume of $250-300 million, this unlock signifies a considerable increase in supply.
Token unlocks are designed to prevent early investors and project teams from flooding the market. However, significant unlocks like ONDO can lead to substantial price fluctuations. Research firm The Tie indicates that high volatility is likely to be observed before and after these major token unlocks.
ONDO’s Price Takes a Hit
As of the news report, the ONDO token trades at $1.14, marking its lowest level since December 2, 2024. The token has lost approximately 5% in a single day and around 15% since the beginning of the month. TradingView data shows that the altcoin has been in a consistent downtrend since hitting a peak of $2.10 on December 16, 2024.
Investors are keenly observing how these token unlocks will impact market equilibrium. The implications of the increased supply on prices will become clearer in the coming days.
