Altcoin Market Poised for Volatility as $3B in Tokens Set to Unlock, ONDO Takes the Lead
As a huge token unlock event approaches, with billions of cryptocurrencies expected to go into circulation, the altcoin market may experience notable swings this week. The weekly unlock schedule is worth almost $3 billion, the most since November, according to statistics from Tokenomist. With the largest contribution, Ondo Finance’s ONDO token is the most prominent among those scheduled to be unlocked.
$3 billion worth of token unlocks are due.
ONDO Token Unlock: A Major Event for the Market
On January 18, Ondo Finance is set to release a staggering 1.94 billion ONDO tokens, valued at around $2.23 billion. Over 130% of the approximately 1.4 billion coins that are now in circulation are represented by this unlock. Given that ONDO’s previous daily trading volume has often been between $250 million and $300 million, the release’s size is particularly noteworthy. This event is expected to exert significant pressure on the market, potentially injecting volatility as billions of dollars’ worth of tokens flood the market.
Token unlocking, where initially limited tokens are gradually distributed over time, is a common practice in the bitcoin industry. The goal of the system is to prevent early investors and team members from flooding the market with tokens at once, which could lead to price instability. However, significant unlocking events, such as the impending release of ONDO, may result in higher volatility. Tokens that undergo unlocks equal to 100% of their daily trading volume typically see increased price volatility both before and after the event, according to research by The Tie.
Timetable for unlocking: January 13–19. (Source: Tokenomist)
Token unlocking, where initially limited tokens are gradually distributed over time, is a common practice in the bitcoin industry. The goal of the system is to prevent early investors and team members from flooding the market with tokens at once, which could lead to price instability. However, significant unlocking events, such as the impending release of ONDO, may result in higher volatility. Tokens that undergo unlocks equal to 100% of their daily trading volume typically see increased price volatility both before and after the event, according to research by The Tie.
A Volatile Start to the Year for ONDO
As per the latest market statistics, ONDO’s price is at $1.14, its lowest since December 2. This is an approximate 15% monthly decline and a 5% daily decline. The cryptocurrency has been progressively losing value since reaching a top of more over $2.10 in mid-December, according to TradingView statistics. Traders are keeping a careful eye on ONDO’s price movement and the altcoin market as a whole for indications of elevated volatility in the days preceding the significant unlock event.
Unlock Schedule Overview (January 13 to January 19)
Prices for ONDO fell to their lowest level since December 2. (Source: TradingView/CoinDesk)
The $3 billion worth of tokens that will be issued this week include other cryptocurrencies, but the majority will be ONDO. As the token unlocking occurs, it will be interesting to watch if ONDO can stabilize or if its price will keep falling in the lead-up to the event. The outcome of this unlocking and whether it portends a longer-term trend in bitcoin volatility will be widely monitored by market watchers.
