The analysis by Token Unlocks reveals that not all tokens perform equally in terms of unlocked value and price performance. Sectors such as DEX and DeFi have unlocked significant amounts of value but have experienced negative price performance. Derivatives and Gaming tokens have also seen declines in price after unlocking large amounts of value. On the other hand, LIQUID Restaking and RWA have experienced significant price gains. Token Unlocks recommends that investors be cautious of projects with a high percentage of unlocked tokens as it can increase circulating supply and impact the token's market dynamics. The analysis also shows that larger unlock events have a noticeable inverse relationship with price, and tokens with more than 70% of their supply vested have lower volatility and higher prices. Tokens like $PENDLE and Aave have seen positive price movements after unlocking a small percentage of their supply, indicating market confidence in those projects. Conversely, tokens like $ENA have experienced price dips after unlocking a small percentage of supply, indicating market volatility. Timing is advised to be an influential factor in predicting a token's price movement and overall market performance.
- Content Editor ( cryptopolitan.com )
- 2024-10-03
Token Unlock Trends: Why Some Sectors Rise and Others Sink