July Token Unlocks: $730M Set to Shake Crypto Markets

Major July Token Unlocks Worth Over $730 Million

In July, TokenUnlocks reported a significant unlocking event involving several tokens, including DYDX, SUI, IO, XAI IMX, APT, STRK, ARB, AXS, APE, PIXEL, and WLD ALT, with a total unlocking value surpassing $730 million. 

Notably, ALT alone exceeded $120 million. Additionally, WLD initiated a large-scale linear unlocking starting on July 24, at a rate of $18 million per day for a period of 730 days.

According to data numerous altcoins are scheduled to release a substantial portion of their tokens into circulation, raising concerns about potential sell-offs and price drops.

Key Players in the July Token Unlocks

Leading the mass is Altlayer (ALT), with a whopping $127 million worth of tokens ready to flood the market. XAI is next, planning to unlock 72% of its circulating supply, valued at $94 million, by July 9. 

Source: X

Worldcoin (WLD), backed by OpenAI's founder, will commence a massive linear unlocking on July 24, releasing 6.62 million tokens daily over 730 days, totaling $13 billion.

Other significant unlocks include DYDX, SUI, IO, IMX, APT, STRK, ARB, AXS, APE, and PIXEL. These tokens represent a wide range of crypto projects, each with a locked token supply designed to manage market stability and foster investor trust.

Market Impact: Historical Trends and Investor Reactions

Historically, large-scale token unlocks tend to have a bearish impact on the market. The advance in circulating supply often leads investors to sell off their holdings to secure profits, creating panic among retail investors and causing prices to underperform. 

For instance, Arbitrum's (ARB) token value dropped 18% following a significant unlock in March, while Apecoin (APE) experienced a 26% decline after a smaller unlock in January.

As the crypto market is bracing for the impact of these unlocks, with many anticipating a "buy-the-dip" possibility as prices potentially decrease. Tokens like SUI, XAI, IMX, APT, ARB, and ALT are expected to experience the most significant declines, presenting potential entry points for sidelined buyers.

Conclusion

July's token unlocks are set to inject a wave of volatility into the crypto market, prompting investors to stay vigilant and adjust their strategies. As the market braces for this influx, the coming weeks will test the resilience of these crypto assets and the strategies of their investors. Whether this will lead to a prolonged downturn or present new buying opportunities stays to be seen, but one thing is clear: July is set to be a defining month for the crypto world.

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