BEARISH 📉 : $638M Token Unlocks Pressure Weakening Altcoin Market

Over the next seven days, more than $638 million in tokens will be released into the crypto market, according to Tokenomist. This influx occurs as the altcoin market faces pressure from thin liquidity and weak buyer interest.

HYPE: Leads with 9.92 million tokens worth over $300 million entering circulation.
XDC Network, Berachain, and Ethena: Each will release tokens valued around $30 million.
Linear releases: RAIN will see 9.41 billion tokens worth over $90 million added daily.
Solana: Plans to release 479,120 SOL tokens valued at $48.24 million, representing 0.08% of its supply.
Other projects: Notable releases include Canton, Official Trump, and River.

These token supplies could exert downward pressure if released during a market downturn, as early holders may sell off their holdings.

Altcoin Market Under Stress

The scheduled token releases coincide with a weakening altcoin market:

Altcoin market capitalization decreased by 4.4% on Feb. 2.
Ethereum dropped 9.5%, with BNB and XRP also declining sharply.
The market cap fell below its 100-day simple moving average, a level not seen since May 2022.
A head and shoulders pattern suggests further distribution rather than accumulation in altcoins.

Head and shoulders pattern on the crypto market cap chart (excluding BTC). | Source: TradingView

Analysts suggest any short-term altcoin rebound may only offer temporary relief rather than a lasting recovery.