Powell’s Statements Conclude July as August Altcoin Unlocks Loom

July is almost over, and we will conclude it with Fed Chairman Powell‘s statements. So, what are the expectations for August? One of the most important things to pay attention to when entering a new month is the major token unlocks. High token inflation has serious negative consequences on the price.

August Altcoin Token Unlocks

This month, at least 16 altcoins will release tokens worth over $900 million in total. Since most of these will go to exchanges, it could lead to price drops due to increased sales in a low-volume, low-risk appetite environment. Even worse, many investors might already take selling positions in anticipation of these major unlocks, which means the price could drop further due to panic.

We regularly discuss upcoming token unlocks every week, covering their size, timing, and all details. However, being prepared for these unlocks weeks in advance will protect you from potential negative fluctuations in August.

Additionally, last-minute cancellations of token unlocks (DYDX, WLD as examples) can cause speculative price increases. Sometimes, teams announce various agreements to postpone token unlocks for reasons like liquidating leveraged positions in futures or preserving token value. When they announce this at the last minute, the extra demand created by the absence of new supply can quickly reverse excessive sales.

Altcoin Token Unlocks

• August 1: DYDX ($10.6 Million)
• August 1: SUI and ZETA ($47.5 and $31.7 Million)
• August 2: GAL Coin ($4.17 Million)
• August 3: W Coin ($158 Million)

You can examine the details of the circulating supply ratio and token-based amounts in the visual shared by Wu. The most notable unlocks will be for ZETA and W, as new supply will enter circulation in double-digit percentages.

The largest unlock is again being done by AVAX, as we are accustomed to. Although SOL Coin has grown massively, AVAX has continued to face pressure throughout the year due to its double-digit inflation.