February is set to be a hot point for crypto assets, with several cryptocurrencies set to release over $800 million worth of assets during the month. According to TokenUnlocks data, 26 crypto projects plan to unlock their tokens in February, potentially flooding the crypto market with about $1 billion worth of crypto assets. Most of this liquidity will come from Avalanche (AVAX), with approximately $345 million worth of AVAX expected to be brought to market in mid-February.
Massive cryptocurrencies to be unlocked in February 2024
Many major projects, including Aptos (APT), The Sandbox (SAND), and Avalanche (AVAX), have unlock events scheduled for February 2024. For example, Avalanche plans to unlock 9.54 million AVAX tokens, representing 2.6% of the total supply. February 22. This token unlock will be allocated in four batches, with 2.25 million AVAX tokens to strategic partners, 1.67 million tokens to the Foundation, and 4.5 million tokens to his Avalanche team. And 1.13 million tokens will be allocated as an airdrop.
Aptos (APT) will unlock 24.84 million APT tokens worth $228.55 million, or 7.34% of the total supply, on February 11th. Similarly, Metaverse platform The Sandbox will unlock his $205.59 million SAND tokens on February 14th, representing 9.19% of the circulating supply. As of this writing, these tokens are worth $90.46 million.
Ethereum L2 Blockchain Optimism is set to unlock 24.16 million OP tokens worth $71.51 million on February 29th. This represents 2.52% of the total supply.
Other notable tokens set for unlocking include SUI, Algorand (ALGO), ApeCoin (APE), MANTA, and AGIX.Once unlocked, these tokens will be free to sell on the open market
What impact will these unlocks have on prices and investors?
Crypto unlocking among altcoins is not a new phenomenon in the crypto industry and tends to have both positive and negative impacts on the prices of such crypto assets. However, once a locked token is unlocked, it can enter the public market.
This means that large amounts of tokens can potentially be traded at the same time. If any of these newly unlocked tokens are sold quickly, it could put downward pressure on the price as supply overwhelms demand.
At the time of writing, the crypto market is somewhat stagnant in terms of price volatility, although some cryptocurrencies such as Chainlink (LINK) have risen significantly over the past seven days.
Chainlink also recently witnessed the unlocking of 19 million LINK tokens worth $341 million. In response to this, 16 million tokens were immediately deposited into the cryptocurrency exchange Binance, suggesting a crash.
Total market cap at $1.6 trillion | Source: Crypto Total Market Cap on Tradingview.com
Featured image from Great Bridge Links, chart from Tradingview.com
