$312M in Token Unlocks Threaten Altcoin Market Stability
The crypto market is experiencing a period of fear as the total market capitalization has decreased by 3.7% to $3.59 trillion on November 3. This drop coincides with over $312 million worth of token unlocks set to occur between November 3 and November 10, according to Tokenomist data.
- Major one-time unlocks above $5 million include Ethena ([ENA](https://holder.io/coins/ena/)), Memecoin ([MEME](https://holder.io/coins/meme/)), and Movement ([MOVE](https://holder.io/coins/move/)).
- Ongoing daily releases exceeding $1 million per day are expected from tokens such as [Solana](https://holder.io/coins/sol/), [Official Trump](https://holder.io/coins/trump/), [Worldcoin](https://holder.io/coins/wld/), [Dogecoin](https://holder.io/coins/doge/), and [Avalanche](https://holder.io/coins/avax/).
Large-scale token unlocks can increase supply and put downward pressure on prices, especially in a fragile market environment, as evidenced by the Altcoin Season index dropping to 25, its lowest in months.
Altcoin Underperformance
- Glassnode analysis shows altcoins have significantly underperformed compared to [Bitcoin](https://holder.io/coins/btc/), with profitability levels similar to the 2022 bear market.
- Large holders, or "whales," have been selling at a loss for nearly a year, with Spent Output Profit Ratio (SOPR) below 1 since December 2024.
Despite current challenges, some analysts see potential for a turnaround. Market analyst Cas Abbe noted that Bitcoin’s dominance chart forms a head-and-shoulders pattern, which resembles the late 2020 scenario before altcoins began outperforming BTC.
- Bitcoin dominance is currently at 60%, up more than 2% over the past month.
- A breakdown below the 58% dominance level could signal another altcoin rally.