Binance Research estimates token unlocks to reach $155 billion by 2030

Binance Research, in a recent report, has estimated that token unlocks could reach a total value of $155 billion between 2024 and 2030. The unlocking of tokens, which is often driven by venture capital funding and positive market sentiment, has the potential to exert significant downward pressure on token prices if not accompanied by increased demand. The report highlights that tokens launched in 2024 have the lowest market capitalization to fully diluted valuation ratios, indicating a large amount of tokens that will be unlocked in the future. The influx of private market capital in recent years has contributed to the rise in crypto project valuations, even before public market launches. The report also raises concerns about inflated valuations, as many new tokens have valuations comparable to established tokens despite having less user traction and market presence. Binance Research advises investors to consider project fundamentals and thoroughly understand unlock schedules to avoid the risks associated with high FDV tokens. Likewise, projects should adopt long-term thinking in tokenomics design, considering equitable token distributions and strategies to mitigate future selling pressures. Both investors and project teams need to be mindful of the long-term implications of their decisions in order to foster a healthier market environment.