Price Growth of Worldcoin and Two Other Crypto Projects May Stall Due to Significant Token Unlocks: IntoTheBlock
Crypto analytics firm IntoTheBlock is warning that large token unlocks in the future may hamper the performance of several altcoins.
IntoTheBlock notes that nearly $25 million worth of Bitcoin (BTC) is “unlocked” or mined each day – an amount that is easily 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 token unlocks that represent relatively large percentages of their market cap, according to the firm’s data.
IntoTheBlock notes that the price performance of WLD, STG and MNT may suffer due to the amount of fresh tokens issued daily.
“This chart shows daily linear unlocks for top assets
$24.9M worth of BTC is unlocked daily, though it has minimal market cap impact.
Stargate, Worldcoin, and Mantle have significant unlocks relative to market cap, posing potential market cap dilution risks.”
IntoTheBlock/X
The firm shares another chart showing upcoming token unlocks, including a massive unlock for cross-chain interoperability protocol Wormhole (W) amounting to 33% of its total market cap.
“The following chart shows upcoming token unlocks and what part of the supply will be unlocked.”
Source: IntoTheBlock
On a more bullish note, IntoTheBlock says that net flows of the oracle service Chainlink (LINK) to crypto exchanges have been negative for the last two weeks. Flows out of crypto exchanges are generally interpreted as bullish, suggesting there is less available supply to create sell pressure.
“Exchange netflows for LINK have been negative for the past two weeks, with roughly $110 million worth of LINK being withdrawn from exchanges during this period.
Such activity is typically associated with an accumulation phase, indicating that investors are moving LINK off exchanges and into long-term holdings.”
Source: IntoTheBlock/X
At time of writing, LINK is trading for $13.77, up over 5% on the day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Price Growth of Worldcoin and Two Other Crypto Projects May Stall Due to Significant Token Unlocks: IntoTheBlock appeared first on The Daily Hodl.