Markets

Several token unlocks are set for this week, crypto market retreats

Seven cryptocurrency and decentralized finance (DeFi) platforms will be unlocking tokens this week. Token prices usually do not react well to dilution in supply.

On May 1, the 1-inch exchange will be the first major protocol to open tokens this week. However, with only 21,429 tokens issued, it is unlikely that there will be any significant impact on token prices.

Code opens this week

The value of unlocking a 1INCH token is less than $10,000 at current prices of about $0.463. According to Token Unlocks, 37% of the total supply of around 1.4 billion tokens is still locked.

Moreover, its tokens are highly weighted towards the team and investors. There are 1.29 billion tokens awarded in the issuance schedule that runs through December 2024.

Open Cryptocurrency and DeFi Token for this week – The code opens

Also on May 1, Polkadot-based web3 finance platform will launch assets. About 27.4 million ACA tokens worth approximately $2.3 million will be unlocked. These represent 2.74% of the total supply, so there may be some downward pressure on token prices.

Acala tokens are a bit more spread out, with 34% going to syndicated loan participants, 29% to strategic partners, and 12% to reserves. The maturity and unlock schedule runs through March 2028. The ACA is trading down 97% from its peak of $0.087.

On May 3, Nym will open approximately 7.4% of the total supply. About $16.3 million in NYM tokens will be issued anticipating downward pressure on prices this week.

Trader Joe DEX issues tokens every two days, and the next day is May 3 with 108,000 JOE tokens.

May 5th will see token unlocks for Liquity (LQTY) and Galxe (GAL). Meanwhile, on May 7, Tornado Cash will unlock 175,000 TORN tokens worth approximately $1.3 million.

The theory is that the process matches the incentives for all DeFi project investors and stakeholders. However, the truth is that it often causes short-term volatility and selling pressure.

Crypto Market Outlook

Cryptocurrency markets turned red during the Asian trading session on Monday morning. Total capitalization shrank by 1.7% on the day, dropping to $1.23 trillion.

BTC fell 2% at $28,595, while Ethereum (ETH) lost 2.7% in the slide to $1,848. The only crypto asset among the top 20 bucking the trend is Binance’s BNB, which posted a 4.4% gain to $335 at the time of writing.

It appears that the patch is resuming, so projects that release token offerings this week may suffer even greater losses.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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