In July, over 40 top altcoins will see the end of their vesting periods, leading to the unlock of tokens worth a staggering $755 million to the market.
Altcoin Unlock Events to Commence in July
In the crypto world, vesting rules stop early backers and team members from cashing out their tokens by keeping them restricted over a specific time. A strategic move to help shield against sharp price drops in the initial stages of a crypto venture.
According to the Token Unlocks data tracker, the most substantial volume of crypto assets set to be released is from AltLayer (ALT). This decentralized protocol has about 684 million ALT tokens worth approximately $125 million on July 25.
The second-largest token on the list is Xai (XAI), a gaming-focused project. It is to release a token worth $93 million on July 9 and $2 million for its reverses. While Aptos (APT) unlocked $101 million in May and $102 million in June, a total of 11.31 million APT tokens worth $77 million is set for the next unlock.
Arbitrum (ARB) also unlocked $95 million in May and $105 million in June. On July 16, the protocol will also drop $75 million worth of tokens on the market. Other projects like Optimism (OP), Sui (SUI), Immutable (IMX), and Starknet (STRK) will also unlock tokens in July.
It is important to note that most of these tokens are designated for the team, investors, advisers, protocol development, treasury ecosystem, and community.
Tokens Circulation in the Crypto Market
The circulation of tokens plays a pivotal role in determining the liquidity and value of crypto assets. Higher circulation implies increased trading and token usage, affecting price and market trends.
This was demonstrated when Ripple Labs Inc. offloaded a staggering 150M worth of XRP early this month. The diluted market liquidity weighed down the price of XRP.
Notably in May, Shiba Inu had to shrink its token’s supply from the market through burning. This is a move designed to potentially increase the value of the remaining tokens in circulation.
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