$450 Million in Token Unlocks Expected to Impact Crypto Market
The crypto market has experienced a liquidation of nearly $170 million in the past 24 hours, coinciding with a significant token unlock this week. The DeFi market is set for substantial supply changes from December 30 to January 5, with the top seven unlocks totaling over $450 million.
Tokens Unlock to Cross $450M This Week
SUI (#SUI) will see an unlock of 81.91 million tokens, amounting to $336.58 million, which is 29.3% of its unlock supply and 2.80% of its market cap. SUI is currently trading at $4.0859, facing a potential breakdown with support at the 50 EMA ($3.83) and further risks toward the 100-day EMA ($3.1525).
Photo: TradingView
Optimism (#OP) is preparing to unlock 32.21 million OP tokens on December 31, valued at $58.46 million, representing 2.38% of its market cap. Currently trading at $1.89, OP shows signs of a bearish pennant but may break above the $2 mark as indicated by a rising RSI.
Photo: TradingView
The DYDX platform (#DYDX) has an upcoming unlock of 57.4%, equating to $12.55 million on January 1. DYDX is consolidating between $1.42 and $1.50, with key support at $1.13 and the psychological level of $1.00.
Photo: TradingView
Maverick protocol will unlock 49.67 million MAV tokens worth $10.41 million, marking a 23.3% supply increase. Other tokens like Sleepless AI, TARS AI, and Echelon Prime are also unlocking nearly $10 million, with Echelon Prime seeing almost 40% of its supply unlocked.
The anticipated liquidation surge may negatively impact DeFi and AI tokens if current trends continue. However, expectations for a New Year rally could stimulate demand in the altcoin sector.
Ethereum Grows against BTC, Altcoins to Roar
The altcoin market cap (excluding Bitcoin and Ethereum) is at $943 billion, reflecting a 0.69% rise after a previous recovery of 1.78%. The ETH/BTC chart indicates a slight recovery in Ethereum's value against Bitcoin, stabilizing above 0.034 BTC and recovering to 0.03650 BTC recently.
Photo: TradingView
This recovery suggests a bullish reversal, enhancing the prospects for an altcoin season in the crypto market.
Conclusion
The crypto market is poised for a critical week ahead, with over $450 million in token unlocks likely to exert short-term supply pressures on major tokens like SUI, OP, and DYDX. Despite bearish risks, indicators of a bullish reversal in the Ethereum/BTC ratio and overall altcoin market cap suggest potential for a New Year rally. Sustained demand could facilitate recovery from supply shocks, paving the way for an altcoin season in 2025.