The price of StakeStone (STO) has risen more than 500% in the past week, drawing attention to the token’s ecosystem. The altcoin’s rally precedes an important one unlock tokenwhich could put selling pressure on the token and drive its price down.
Why the StakeStone (STO) Price is Rising
The StakeStone (STO) price has risen more than 500% in the past week amid bullish fundamentals in its ecosystem. noted from market analyst Neel. One of these developments includes StakeStone’s launch of version 2.0 of its protocol earlier this year. The strike protocol The version enables gasless transactions, social login and AI-powered yield optimization across 20 blockchains.
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Neel further said that the StakeStone (STO) price has soared due to the protocol’s partnership with Trump’s World Liberty to provide cross-chain liquidity infrastructure for the USD1 stable coin. This represents a huge positive for the token’s ecosystem, as USD1 has a circulating supply of $4.3 billion. StakeStone will act as a liquidity rail that moves the stablecoin across different networks.
Neel pointed out that another reason why the StakeStone (STO) price is rising is that the liquid staking and yield story is gaining momentum again this year. As such, smart money is pouring into this sector and investing in altcoins like STO. On-chain analytics platform Lookonchain attracted attention to a new wallet that raised 25.5 million STO, 11.32% of the circulating supply, from Binance earlier this week.
Futures market activity is also driving the StakeStone (STO) price increase. CoinGlass data show that top traders on Binance are currently bullish on StakeStone, with traders’ long/short ratio above 1. The altcoin’s derivatives volume is up over 500% to $3.44 billion, while open interest is up nearly 300% to $332 million.
Price threatens to drop with upcoming unlock
The StakeStone (STO) price is at risk of significant selling pressure due to an upcoming token unlock. Cryptorank data shows that 20.17 million STO tokens, 2.02% of the total supply, will be unlocked tomorrow. At current prices, these tokens are worth $18.22 million and represent 8.95% of the total value market cap of altcoin. Meanwhile, it’s worth noting that nearly 70% of the token’s supply has yet to be unlocked.
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Most of the tokens unlocked tomorrow will go to investors, while the Foundation and team will also get a portion of the allocation from tomorrow’s unlock. Crypto analyst Anti-Moon opined that the team and investors likely pushed up the price of StakeStone (STO) because they want to sell the altcoin at higher prices.
At the time of writing, the StakeStone price is trading around $0.8465, up over 285% in the last 24 hours, according to facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com