Massive Token Unlocks Worth $147M to be Released in July

Key takeaways:

• According to statistics from TokenUnlocks, crypto tokens worth $147 million are scheduled to unlock in July 2023.
• Tokens from projects such as DYDX, ApeCoin, Aptos, Axie Infinity, and Optimism are expected to enter circulation.

In July, altcoins are anticipated to continue to lose value as Bitcoin and Ethereum prices struggle under the market’s severe selling pressure. 

Given that Bitcoin has reclaimed its crucial $30,000 level, the month of June has been rather pleasant for the cryptocurrency market. Altcoins do not, however, appear to be showing signs of a robust resurgence as in April. Additionally, the forthcoming unlocking of some tokens may result in price changes.

Bitcoin and Ethereum values fell overnight on Friday as a result of the Securities and Exchange Commission requesting more details in spot Bitcoin ETF filings. Due to the impending token unlock in July, altcoins will probably see more selling pressure. 

When a particular number of assets that were previously locked or prohibited from circulation in the cryptocurrency market are released, this is referred to as a “token unlock.” The majority of the time, project developers or early investors hold these tokens.

These tokens are kept “locked” for the “vesting period,” which is a set amount of time. To put it another way, tokens that are still subject to the vesting period are inaccessible to anyone and cannot be purchased, sold, or exchanged on a public market.

The tokens are accessible to the original recipients after the vesting period has ended. Token unlocks relate to this time frame.

Token unlock events raise the amount of a cryptocurrency project’s circulating supply. The oversupply that results from a vast influx of cryptocurrencies into the market might drive down prices. However, this effect is not always detrimental.

The market’s response to this event can be influenced by the amount of the unlock and the project’s overall reputation. Sometimes, a big unlock may result in panic selling, especially if investors worry that the price may fall.

On the other hand, if the project is well-regarded and the unlock is anticipated, it might increase liquidity and show the project’s durability, which might increase investor trust.

Within the coming weeks, tokens from essential projects like DYDX, ApeCoin, Aptos, Axie Infinity, and Optimism worth up to $147 million are expected to enter circulation. 

A significant number of tokens from various DeFi projects are preparing to be unlocked in July, according to data from intelligence tracking service TokenUnlocks. Unlocks may make the selling pressure being felt by crypto market players as a result of the SEC investigation and the decline in asset values much worse.

According to the chart created by Crypto Journalist Collin Wu, the first half of July will see the unlocking of DYDX, Aptos (APT), and Immutable (IMX). These three projects will collectively unlock 29.13 million tokens worth $59.4 million.

This token unlock make up 0.45% to 0.90% of the asset supply. Less than 1% of unlocks often have a negative effect on asset prices. 

Optimism (OP), Axie Infinity (AXS), and ApeCoin (APE) unlock are scheduled for the second half of July. These unlocks, which make up 0.5% to 1.5% of the asset’s supply, are likely to have a major influence on asset values and increase selling pressure.

The SEC’s crackdown and the token unlock event is expected to come as a double whammy for APE, AXS, and OP. Let’s delve deeper into the unlock details of each token:

DYDX Price Analysis

DYDX is still holding onto its gains since its lows in June. In July, a total of 6,520,128 tokens worth $13,170,659 and 0.652% of the supply will become available. The current trading price of the token is floating around $2.05.

APT Price Analysis

At this moment, Aptos (APT) is trading for $7.2. The risk gauge rank of APT shows that it is now a low-risk investment. APT’s upward surge brought the token out of a protracted negative phase and into a small bull trend.

The signal will be particularly useful for risk-averse traders in helping them steer clear of risky bets. July will see the unlocking of 4,543,478.03 tokens, or $32,576,737 and 0.454% of the entire supply.

IMX Price Analysis

IMX is a native token of Immutable X. Through partnerships with well-known platforms like IMVU and GameStop NFT, Immutable X, a leading platform for web3 games on Ethereum, adds over 1.25 million new cryptocurrency wallets to its user base.

In July, 18,075,990 tokens worth $13,337,767, or 0.904% of the total supply, will become available. IMX is trading at $0.73 right now. 

APE Price Analysis

Despite the uncertainty facing APE investors, they have renewed hope because a new hybrid coin provides the amazing potential for significant returns.

As a result, APE investors are already cutting their losses and refocusing on the hybrid meme currency, which is predicted to offer investors a 20,000% return by the end of 2023.

The price of the APE token at the moment is $2.24. The significant outflow of APE whales is a factor in the ongoing price drop of the APE currency. In July, 15,601,326 tokens, or $34,322,917 and 1.56% of the total supply, will be unlocked.

AXS Price Analysis

The recent debut of Apple’s Vision Pro Augmented Reality (AR) headset has rekindled interest in the metaverse, which has helped Axie Infinity (AXS). AXS token is currently being traded at $6.25. But the energizing force seems to be waning. A total of 3,425,625 tokens, or $20,793,544, or 1,269% of the entire supply, will be released in July.

OP Price Analysis

In comparison to other cryptocurrencies, the price of optimism (OP) is recovering more swiftly and may outperform the group as a whole. The OP token is currently trading at $1.33. The month of April could be busy for this coin. 24,159,191.04 tokens, or 0.562% of the entire supply, will be made available for purchase in July for $31,890,132.

Note: All the prices mentioned in the post are as of the time of writing. It is important to recognize that the cryptocurrency market is unpredictable and volatile by nature. Do your own research before investing in any of the tokens.