Alternative cryptocurrencies (altcoins) market could see further volatility this week as impending token unlock schedule frees up billions of dollars worth of supply in several coins, including Ondo Finance’s ONDO token There is.
The weekly unlock calendar, which includes names like ONDO, ARB, and STRK SEI, is worth $3 billion, the largest amount since November, according to Tokenomist data.
ONDO from Ondo Finance, a decentralized platform focused on tokenization, accounts for a large share of this tally.
On January 18th, the project released 1.94 billion ONDO worth $2.23 billion, representing more than 130% of the token's circulating supply of approximately 1.4 billion pieces. ONDO's impending unlocking is several times higher than its recent daily trading volume, which has ranged from $250 million to $300 million.
Unlocking is the gradual release of initially frozen tokens to prevent early investors and project team members from liquidating their coins all at once. A gradual release avoids sudden price fluctuations and market instability.
However, from time to time, unlocks such as ONDO that are larger in terms of circulating supply of tokens or average daily volume of coins may occur, which could lead to volatility in the market. According to research by The Tie, tokens facing unlocks equal to 100% of their average daily volume will experience volatility before and after the event.
ONDO changed trade at $1.14 at press time, its lowest since December 2nd. This equates to a 5% loss for the day and a month-to-date decline of nearly 15%. According to TradingView data, the price has been in a free fall since hitting an all-time high above $2.10 on December 16th.
