Brace Yourselves: The Altcoin Market Might Crash Again as $755 Million Worth of Tokens Prepare to Unlock

Over 40 projects are set to unlock about $755 million worth of tokens. Now, that's a huge influx of tokens. And we could be seeing lots of sell-offs

The altcoin market might crash again. Why? Over 40 projects are set to unlock about $755 million worth of tokens. Now, that’s a huge influx of tokens. And we could be seeing lots of sell-offs which results in price slumps.

Most projects use a clever system called vesting to keep early investors and team members from dumping their tokens too soon. But time’s up! And those tokens are coming out. About $100 million worth of tokens will hit the market in the first week of July alone.

In this article, we’ll dive into some of the altcoins with the heaviest unlocks, breaking down what this means for the market. And how it might impact your investments.

1) Aptos (APT)

The first on our list is a regular name, Aptos. It’s time for another of their regular unlocks. Aptos is a Layer 1 blockchain designed for scalability, reliability, and security. Aptos aims to deliver faster transaction speeds and lower costs. This makes it suitable for various decentralized applications.

Aptos unlocked $101 million in May and $102 million last month. They plan to unlock 11.31 million APT tokens worth $77 million on July 12.

This makes up 2.49% of its circulating supply. These are allocated to its foundation, community, core contributors, and investors. Let’s break it down:

Now, let’s talk about price action. APT has seen a bit of a rollercoaster lately. It dropped from $17.63 on April 1 to $6.99 on June 28 – that’s a 60% drop in three months! So, these unlocks have hurt the price.

Despite this dip, Aptos still has long-term potential. They recently teamed up with Alibaba Cloud to launch Alcove, a new initiative to boost Japan’s web3 ecosystem. This partnership even gave APT a 2% boost right after the news hit.

So, what does this unlock mean for investors this July? Well, it could put some downward pressure on the price, but keep an eye on those long-term partnerships and developments. Aptos might just have some surprises up its sleeve!

2) Arbitrum (ARB)

Next on the list of heavy unlocks is Arbitrum. This project is a Layer 2 scaling solution for Ethereum, designed to improve transaction speeds and reduce costs. It uses optimistic rollups to improve Ethereum’s efficiency and scalability.

So, Arbitrum released $95 million in May and $105 million in June, and it’s set to drop another $75 million in tokens for its team, advisers, and investors on July 16. Here’s the allocation plan:

Back on March 16, Arbitrum released a massive 1.1 billion ARB token worth $2.32 billion. Since that huge unlock, ARB prices have taken a hit, dropping by over 63% from a high of $2.27 on March 8 to $0.7971 at the time of this article.

Regardless of the price drop, there’s a silver lining for Arbitrum users. The proposed adoption of “Timeboost” has sparked renewed interest in the platform. Timeboost is a new transaction ordering policy. The goal is to improve Arbitrum’s transaction efficiency and user experience. This would possibly increase user activity.

So, while the upcoming unlock might bring some short-term turbulence, keep an eye on how these new developments play out.

3) AltLayer (ALT)

Let’s wrap things up with our final and biggest unlock for July. Decentralized protocol AltLayer is set to unlock a massive 684 million ALT tokens worth about $125 million on July 25.

These tokens are allocated to its team, investors, advisers, protocol development, treasury ecosystem, and community. Here’s the breakdown:

Their last unlock on June 25 saw tokens worth $20 million hitting the market. And since then, ATL has dropped by over 10%. So, we expect the upcoming unlock to have a similar impact.

That’s it for July. Let me know what you think in the comments below

The above is the detailed content of Brace Yourselves: The Altcoin Market Might Crash Again as $755 Million Worth of Tokens Prepare to Unlock. For more information, please follow other related articles on the PHP Chinese website!