- The performance of a number of altcoins could be negatively impacted by significant token unlocks in the future, according to crypto analytics company IntoTheBlock.
According to IntoTheBlock, every day, around $25 million worth of Bitcoin (BTC) is mined or unlocked; this sum is easily consumed by the sizable and liquid market for the cryptocurrency king.
However, according to the firm’s data, projects like layer-2 blockchain Mantle (MNT), decentralized finance (DeFi) platform Stargate Finance (STG), and Sam Altman’s proof-of-person project Worldcoin (WLD) have daily token unlocks that account for comparatively large percentages of their market cap.
The amount of new tokens created daily, according to IntoThe Block, may have a detrimental effect on the price performance of WLD, STG, and MNT.
Another chart that the company releases details impending token unlocks. One of the most significant unlocks is for the cross-chain interoperability protocol Wormhole (W), which will result in a 33% market value unlock.
More optimistically, IntoTheBlock reports that for the past two weeks, net flows from cryptocurrency exchanges to the oracle service Chainlink (LINK) have been negative. The prevailing consensus is that flows out of cryptocurrency exchanges are optimistic since they indicate that there is less supply available to drive down prices.
Exchange netflows have been negative for the past two weeks due to a net withdrawal of LINK worth roughly $110 million from exchanges.
Usually linked to an accumulation period, this kind of action shows that investors are shifting their LINK holdings from exchanges to long-term investments.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
