Altcoin Market Could Heat Up This Week With $3B Token Unlock Schedule, ONDO Leads the Charge

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What to know:

  • The weekly token unlock schedule is worth $3 billion, the highest since November.
  • ONDO leads the way with 1.94 billion coins scheduled for unlock on Jan. 18.

This week could bring additional market turbulence to altcoins due to the upcoming token release schedule. This event will make available a significant amount of value, estimated in billions of dollars, for various coins, such as the ONDO token from Ondo Finance.

According to Tokenomist’s data, the weekly unlock schedule featuring tokens such as ONDO, ARB, STRK, SEI, among others, currently stands at a staggering $3 billion – the highest figure since November.

As a crypto investor, I find that the decentralized platform Ondo Finance dominates significantly in terms of its focus on tokenization, with ONDO accounting for a substantial portion of the total market share.

On January 18th, approximately $2.23 billion worth of ONDO tokens will be released, representing over 130% of the current circulating supply, which is around 1.4 billion ONDO. This token unlock is significantly larger than the daily trading volume, which has been fluctuating between $250 million and $300 million recently.

Staggered unlocks refer to a process where tokens that were initially locked or frozen are gradually made available for distribution. This is done to stop early investors and team members from selling their coins all at once, thus preventing sudden price fluctuations and market volatility.

Sometimes, we encounter large token or coin releases similar to ONDO, which are significant in terms of circulating supply or average daily trading volume. These events have the potential to introduce market volatility due to their size. According to findings by The Tie, tokens with unlocks equivalent to 100% of their average daily volume tend to experience increased volatility before and after such events.

At the moment of reporting, ONDO was sold at $1.14 – its lowest price since December 2nd. This marks a 5% decrease for the day and a nearly 15% drop over the past month. The price has been steadily decreasing since it reached record highs above $2.10 on December 16th, according to data from TradingView.

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2025-01-13 10:20