RWA Token Unlocks: Billions in New Supply Surge—What to Expect?

The Real-World Asset (RWA) sector is currently preparing for some substantial token unlocks, with tens of billions of dollars’ worth of assets poised to enter the market in the next few months.

These unlocks stand a good chance of greatly affecting both how much of a given token there is available to buy and sell (its liquidity), and its price. With the supply of tokens apparently set to surge, the big question is whether demand can keep up. If not, we could very well see some serious sell pressure on these newly unlocked tokens.

The tokenized assets in the RWA sector have been gathering ever more interest lately. However, with growth comes the reality of supply increases, and in the case of upcoming token unlocks, these increases are substantial. Some tokens are set to experience huge increases in their circulating supply, which could lead to sharp fluctuations in price and demand. Anyway, here’s a rundown of the biggest upcoming unlocks and what to expect from each.

1. $OM – The Largest Unlock in This Batch

Without doubt, the biggest unlock in the RWA sector is $OM, which will see the stunning total of $702.88 million worth of tokens unlocked over the next six months. This represents a sizeable 10.85% of its total token supply, and it is only one of two unlocks under the USD 1 billion figure happening in the course of 2023. In total, $OM will unlock around $1.68 billion (25.99%) of its total token supply within one year. To put that in perspective, these numbers place $OM among the top of the charts when it comes to unlock value across all RWA tokens.

2. $ONDO – No Short-Term Unlocks, But a Huge One-Year Surge

Although there are no short-term unlock plans for $ONDO, the token’s one-year forecast looks incredible. In just one year, $ONDO will undergo a staggering 61.40% unlock, which will represent a huge liquidity shift for the token and, probably, the market. $ONDO is a major player in the tokenized assets space, and this liquidity unlock is happening along with some other key token unlocks in the same period.

3. $USUAL – A Massive Supply Surge

Keep an eye on the $USUAL token, which has an upcoming supply surge that could hit its price hard. In six months, $USUAL will see 31.20% of its supply unlocked—$31.99 million worth. But what really got our attention is the forecast for a year from now. At that point, a stunning 112.26% of its supply will be unlocked—essentially more than doubling its circulating supply. This is big, and one of the biggest increases in circulating supply we’re seeing across any token. And it’s likely to be felt somewhere across the market, with a whole batch of trading supply suddenly up for grabs.

4. $VENOM – High Unlock-to-Circulation Ratio

The unlock schedule for $VENOM is worth keeping an eye on. In just six months, $42.22 million worth of tokens will be unlocked, which amounts to 17.41% of the total supply. A year from now, that number almost doubles, with 34.82% of the total supply (about $84.44 million) being unlocked. The ratio of unlocked tokens to those currently in circulation is relatively high, especially considering how this is basically just new supply coming onto the market. Unless $VENOM demand steps up substantially, this is potentially significant downward pressure on the price.

5. $XDC – A Slower Emission Schedule

$XDC has a token unlock schedule that is slower and more gradual than that of many of its counterparts. The token will not see any supply unlocked in the first six months, providing some stability in the short term. But after a year, $XDC will release 5.36% of its total supply, worth approximately $59.92 million. While this is a modest amount compared to other tokens, it’s still very important to keep an eye on, as slow emissions can still affect the overall market dynamics.

6. $ZBCN – Steady Emissions, But Notable Long-Term Unlocks

$ZBCN will experience a much more even distribution of tokens over the coming year. In the next six months, it will unlock $16.39 million (21.67%) of its supply, followed in the next year by another 40.11% unlock, or $30.32 million. The token’s long-term emission schedule seems unlikely to have much effect on its price in the way a typical schedule does, having instead the impact of throwing more and more tokens into the market. That’s not great for price stability.

7. $PRCL – Aggressive Unlock Schedule

The unlock schedule for $PRCL is one of the most aggressive among tokens. In just six months, a whopping 39.08% of the total token supply will be unlocked. After one year, the portion of the unlocked supply will be 84.14%. As a result, we expect a massive increase in the circulating supply; however, we do not know anything about the demand side.

As these unlocks approach, vigilance will be required from those participating in the market. The RWA space has been generating some pretty intense buzz, and for good reason—it has the potential to be a very large and viable markdown sector. But we should probably keep in mind that every incoming dollar (or euro, or yen, or any other local currency) that gets invested in RWAs is a dollar that is not going into any number of other potential (and unrealized) growth sectors or into (also unrealized) any number of other private or public projects.

In the wake of their respective unlocks, the performance of these tokens will be critical to the overall sentiment and price action of the RWA market. As the unlocks approach, investors will need to monitor these developments closely and adapt their strategies to what seems likely to occur.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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