Crypto analytics firm IntoTheBlock warns that unlocking major tokens in the future could hinder the performance of several altcoins.
InTheBlok notes that nearly $25 million worth of Bitcoin (BTC) is “unlocked” or mined every day – an amount that can easily be absorbed by the crypto king’s large and liquid market.
On the other hand, projects like Sam Altman’s proof-of-person project Worldcoin (WLD), decentralized finance (DeFi) platform Stargate Finance (STG), and layer-2 blockchain Mantle (MNT) have daily unlocks of tokens that are relatively represent large amounts. percentages of their market capitalization, according to company data.
IntoTheBlock notes that the price performance of WLD, STG, and MNT may suffer from the amount of new tokens being issued daily.
“This chart shows daily linear unlocks for top assets
$24.9 million worth of BTC is unlocked daily, although this has minimal impact on the market cap.
Stargate, Worldcoin and Mantle have significant exposure to market cap, which poses potential risks of market cap dilution.”
The company shares another chart showing upcoming token unlocks, including a huge unlock for the cross-chain interoperability protocol Wormhole (W), accounting for 33% of the total market capitalization.
“The following chart shows upcoming token unlocks and what portion of the supply will be unlocked.”
On a more bullish note: IntoTheBlock say that net flows from the oracle service Chainlink (LINK) to crypto exchanges have been negative for the past two weeks. Flows from crypto exchanges are generally interpreted as bullish, indicating less supply is available, which can create selling pressure.
“Net flows for LINK have been negative over the past two weeks, with approximately $110 million worth of LINK delisted during this period.
Such activities are typically associated with an accumulation phase, indicating that investors are moving LINK from the stock markets into long-term investments.”
At the time of writing, LINK is trading at $13.77, up over 5% on the day.
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Generated image: Midjourney