Price Growth of Worldcoin and Two Other Crypto Projects May Stall Due to Significant Token Unlocks: IntoTheBlock
Crypto analytics firm IntoTheBlock is cautioning that the performance of several altcoins could be hindered by large token unlocks in the future.
IntoTheBlock asserts that approximately $25 million worth of Bitcoin (BTC) is “unlocked” or mined every day, an amount that is easily assimilated by Bitcoin’s large and liquid market.
However, 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 significant percentages of their market cap, according to IntoTheBlock’s data.
IntoTheBlock warns that the price performance of WLD, STG, and MNT may suffer due to the influx of fresh tokens issued daily.
“This chart displays 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.”
The firm also presents another chart that illustrates upcoming token unlocks, including a massive unlock for cross-chain interoperability protocol Wormhole (W), which amounts to 33% of its total market cap.
“The following chart showcases upcoming token unlocks and the percentage of the supply that will be released.”
On a more positive note, IntoTheBlock reports that net flows of the oracle service Chainlink (LINK) to crypto exchanges have been negative for the past two weeks. Negative flows out of crypto exchanges typically indicate bullish behavior, suggesting that 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“Exchange netflows for LINK have been negative for the past two weeks, with roughly $110 million worth of LINK being withdrawn from exchanges during this period.
This activity is usually associated with an accumulation phase, indicating that investors are transferring LINK from exchanges to long-term holdings.”
At the time of writing, LINK is trading at $13.77, reflecting an increase of over 5% on the day.
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