Massive $3B Token Unlock Wave Looms as ONDO Prepares to Release 130% of Circulating Supply

Rising Token Supply Pressures Could Create Market Volatility As Major Crypto Projects Hit Unlock Milestones

  • Cryptocurrency token releases worth $3 billion scheduled this week mark the highest volume since November 2023.
  • Ondo Finance plans to release 1.94 billion ONDO tokens valued at $2.23 billion on January 18.
  • The ONDO release represents 130% of current circulating supply.
  • Token price has declined 15% month-to-date, reaching $1.14.
  • Research indicates high volatility for tokens with unlocks exceeding 100% of daily trading volume.

Cryptocurrency markets face potential price swings as multiple digital assets prepare for substantial token releases this week, with Ondo Finance leading a $3 billion unlock schedule that could affect market stability.

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Record-Breaking Token Release

According to Tokenomist data, the upcoming week’s token releases, including ONDO, ARB, STRK, and SEI, represent the largest unlock event since November 2023. The most significant release comes from Ondo Finance, which will distribute 1.94 billion ONDO tokens valued at $2.23 billion on January 18.

Supply and Trading Impact

The ONDO token release surpasses the current circulating supply of 1.4 billion by 130%. Daily trading volumes for ONDO typically range between $250-300 million, making the upcoming release approximately eight times larger than daily trading activity. The token’s price has already shown weakness, falling to $1.14, its lowest point since December 2, marking a 15% decrease in January.

Market Implications

Token unlocks are scheduled releases of previously restricted digital assets, designed to prevent early investors and team members from selling large quantities simultaneously. Research from The Tie suggests that when unlock volumes exceed a token’s average daily trading volume by 100% or more, markets often experience increased volatility before and after the event. The size of the ONDO unlock relative to its trading volume suggests potential market instability in the coming days.

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