- Unleashing Tokens: LDO, AVAX, and YGG have scheduled token unlocks for the week, releasing a substantial number of tokens into the market.
- Market Behavior: Token unlocks often lead to price decreases in the lead-up, but the long-term impact remains a point of debate.
Unlocks Galore: The Spotlight on LDO, AVAX, and YGG
In the ever-evolving sphere of blockchain and crypto, this week promises significant market activities. Three major tokens – Lido’s LDO, Avalanche’s AVAX, and Yield Guild Games’ YGG – are preparing for their respective token unlocks. For those unfamiliar, token unlocks refer to the staggered release of previously frozen tokens, often used as a strategy to deter early investors or project insiders from making vast sell-offs.
Diving Into The Details: What’s on the Docket?
Lido, a liquid staking protocol, is poised to unveil 8.5 million LDO tokens, carrying a valuation of approximately $14.2 million, or 0.97% of its total supply, on Aug. 26. These tokens, earmarked for investors, will join their already significant stash exceeding 300 million tokens. It’s worth noting that the LDO token has experienced an 8.5% dip over the past week, but recent data indicates stability in its price trajectory.
Avalanche’s AVAX Unveiling
AVAX, intrinsic to the Avalanche blockchain, has circled Saturday, Aug. 26, for its token release. The unlock will see the introduction of 9.54 million AVAX tokens, valued at a hefty $102.86 million or 2.77% of its circulating supply. Distribution of this unlock will be divided among strategic partners, the foundation team, and airdrop participants. Notably, AVAX’s previous unlock in May did not ruffle the market’s feathers. However, recent data shows AVAX has witnessed a 13% price depreciation over the last week.
Yield Guild Games’ YGG Rollout
Blockchain’s venture into gaming, while innovative, has yet to fully captivate mainstream players. Reflecting this sentiment, Yield Guild Games’ DAO token has been on a rollercoaster. YGG’s token has plummeted nearly 59% annually, despite a temporary 49% rally recently. This week, YGG is gearing up to release 12.2 million YGG tokens, valued at around $2.87 million, representing 6.6% of its circulating supply.
Tokens Unlocks: Predicting Market Oscillations
Unlocks invariably spark debates on their influence over market prices. While the knee-jerk response is often bearish, the overarching impact is multifaceted. Research by analytics company The Tie, covering over 350,000 unlock occurrences, revealed an average decline in coin values preceding an unlock. Yet, intriguingly, when the unfrozen liquidity surpassed the average daily volume by 100%, prices typically experienced a short-lived resurgence before once again dwindling within a fortnight. This pattern underscores a possible holder strategy, biding their time post-unlock to gauge market saturation levels.