Token unlock events are known to be extremely important for altcoin projects as they can impact the price. In this regard, the native asset BLUR of the leading altcoin project NFT marketplace Blur underwent its monthly token unlock in January. Despite the significant token unlock, it was observed that the price of BLUR did not fall but instead increased.
$31.9 Million Worth of BLUR Tokens Unlocked
On-chain data provider Spot On Chain reported that 49.46 million BLUR tokens worth $31.9 million were unlocked from the locked contract and are now being distributed to the US-based cryptocurrency exchange Coinbase.
Token unlocks are generally known to affect price volatility. The release of a large amount of tokens can affect the supply and demand balance, which can lead to increased volatility in the price.
On the other hand, Spot On Chain added that based on past data, a total of 534.7 million BLUR tokens worth $349 million have been unlocked and released into the market since June 15, 2023.
BLUR’s Price Rises Despite Major Token Unlock
Starting the day with a substantial token unlock, BLUR’s price increased despite expectations that the release could affect the supply and demand balance and potentially cause a price drop. According to CoinMarketCap data, the altcoin was trading at $0.6647, up 16.23% in the last 24 hours at the time this article was prepared. The increase in BLUR’s price despite the large token unlock has caught the attention of the cryptocurrency world. Data shows that the price of the altcoin briefly reached $0.6812.
Token unlocks typically affect price volatility. The release of a large amount of tokens into the market can affect the supply and demand balance, potentially leading to increased volatility in the price. Token unlocks can also be indicative of investor interest in the project. If there is significant demand for the project’s token unlock, it can usually have a positive effect on the community and investor base.
Token unlocks can also affect the stability of the price. The sudden release of a large supply of tokens can cause the price to drop, which can shake investor confidence.
