There are important caveats for four altcoins in the cryptocurrency world. Because with the token unlock event, millions of dollars of coins will be on the market. Which cryptocurrencies have alerts? Let’s see.
Altcoin Sandbox will unlock
Altcoin Sandbox (SAND) unlocks approximately $138 million worth of new tokens in August. This situation is expected to affect prices. With a market cap of over $800 million, altcoin Sandbox (SAND) is one of the most popular metaverse projects. It is currently in the top 60 by market capitalization. Like most metaverse projects, altcoin SAND has had a relatively weak start to 2023. Notably, SAND is currently down 55% from the 2023 peak of $0.94 recorded in February. But investors are now increasingly worried about another wave of selling approaching this month.
According to data from TokenUnlocks, more than 300 million altcoin SAND tokens will be in circulation on August 14. Led by Arthur Madrid, the project will put 332.55 million SAND into circulation. The tokens are worth $138 million. The lock to be unlocked represents 17.19% of the total circulating supply.
Threat to Altcoin Optimism price
Altcoin Optimism (OP) broke out of the downtrend with 21% gains in July. However, the next OP token unlock event on July 30 is threatening to interrupt the rally. Data from Defillama reveals that as of May 30, 2023, Optimism has committed to unlocking 32.21 million OP tokens per month. This unlocking program is likely to have implications for market dynamics and token price in the coming months.
Historical price data shows that the two previous unlocks on May 30 and June 30 triggered significant price corrections. As seen above, when altcoin Optimism unlocked 32 million tokens on May 30, OP network activity rose 56% from 7,200 to 11,200. This put the price up temporarily by 8.5% from $1.42 to $1.54 between May 30 and June 6. After the short-term price increase, the OP price has come back over 30%. Accordingly, it saw the bottom level of $ 1.05. Then the sales started.
a similar pattern
A similar pattern appeared during the June 30 unlock. Between June 28 and July 1, the altcoin OP price increased by 16%. Accordingly, it rose from $ 1.18 to $ 1.38. Shortly after, the price came back around 14% towards $1.18 on July 6.
On July 30, 32.21 million altcoin OP tokens worth approximately $52 million were unlocked. Considering the historical patterns, there is a possibility that the recent marginal price increases will cause a double-digit pullback in the coming days.
Aptos (APT) and INJECTIVE (INJ) token unlock events in August
Altcoin Aptos (APT) will unlock 4.54 million APT again on August 12. Its value is estimated at $31.62 million. Injective (INJ) follows a similar monthly unlock. On August 21, 2.86 million INJ tokens with an estimated value of $23 million are scheduled to be unlocked.
In August, the altcoin Injective token unlocking will drive the tokens into ecosystem development. This is likely to have a lower price impact compared to the July 21 token unlock. At the time of the July 21 unlock, 3.67 million INJs were unlocked for a total of $29.52 million for the consultants and team.
What to expect from upcoming token unlocks?
Prior to token unlock events, Sandbox (SAND), Optimism (OP), Injective (INJ), and Aptos (APT) are experiencing an increase in Daily Active Addresses. This is then followed by a sale. Daily Active Addresses data measures user activity on a blockchain network. It is obtained by summing the daily number of individual wallet addresses performing transactions.
When we look at Kriptokoin.com, network activity is usually concentrated during token unlocking periods. Many formerly dormant traders are often revived to pursue certain trading activities required to seek short-term profitable opportunities or claim rewards. This usually pushes the price up marginally just before sales begin.
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