TL;DR
- This week, several major altcoins projects will release large amounts of previously locked tokens, potentially creating short-term selling pressure.
- One of the biggest unlocks is from WhiteBIT Coin (WBT), which will release nearly $1 billion on May 13, representing over 21% of its market cap.
- While Bitcoin’s market remains strong, these unlocks could spark volatility, particularly among lower market cap tokens with lower trading volumes.
The upcoming week in the cryptocurrency world is shaping up to be one of the most eventful of the year, with a significant number of tokens expected to be unlocked across various altcoin projects. Over the next few days, a wide range of projects, from small-cap newcomers to large protocols, will release previously locked tokens, which could add to short-term selling pressure.
When unlocks represent a large percentage of a project’s market capitalization, they can trigger heightened volatility. This is especially true for WhiteBIT Coin (WBT), whose unlock on May 13 will release nearly $1 billion worth of tokens. This massive release represents more than 21% of WBT’s market cap, making many investors cautious about potential mass sell-offs.
Key Projects and Massive Unlocks
The market won’t just focus on WhiteBIT Coin’s unlock. Other projects such as Aptos (APT), unlocking $66.6 million on May 12, and Arbitrum (ARB), with $42.6 million scheduled for May 16, will also be closely watched by traders and analysts. Additionally, StarkNet (STRK) will free up more than $23 million, and Game7 (G7) will unlock over 17% of its supply on May 12, which is expected to create significant market movement. These projects have garnered attention for their promising technology but the upcoming unlocks may test their price stability in the short term.
Additionally, projects like Oxygen (OXY), which will unlock more than 360% of its market cap on May 17, are expected to draw investor attention. These unlocks, ranging from millions to hundreds of millions of dollars, could lead to a significant increase in circulating supply, potentially putting downward pressure on prices, especially for tokens with lower liquidity. As these unlock events unfold, the increased supply could dampen demand, triggering price fluctuations.
A Market to Watch
While token unlocks don’t always result in immediate price swings, investors will need to be prepared for potential fluctuations. Projects whose unlocks represent more than 5–10% of their total supply could experience aggressive selling from those who receive the unlocked tokens.
Although the Bitcoin market remains strong and investor sentiment is generally bullish, the influx of additional liquidity this week could test support levels, particularly among smaller-cap tokens.
