There happens to be an upcoming event in the cryptocurrency market known as a “supply shock,” which is expected to occur in June 2024.
A supply shock happens when a significant amount of a cryptocurrency’s tokens become available to the public after being previously locked. This could occur due to the expiration of a certain locked period, where tokens that were allocated to early investors or developers become tradable.
BREAKING: NEARLY $875M WORTH OF TOKEN UNLOCKS WILL ARRIVE IN JUNE
— BSCN Headlines (@BSCNheadlines) May 31, 2024
The tweet from BSCN mentions on X that nearly $875 Million worth of tokens across various altcoins are expected to be unlocked in June 2024.
Here’s a breakdown of the major unlocks to watch:
– 92.65 million ARB tokens, valued at approximately $106 Million, would be unlocked on June 16th.
– 11.1 million APT tokens, worth around $101 Million, would be unlocked throughout June, with a significant unlock on June 12th.
– 64 million STRK tokens, valued at $76 Million, would be unlocked on June 15th.
– 31.34 million OP tokens, worth approximately $78 Million, would probably be unlocked in June.
– 65 million SUI tokens, valued at $66 Million, would be unlocked on June 1st.
$875M OF TOKEN SUPPLY SHOCKS EXPECTED IN JUNE – A LIST OF AFFECTED ASSETS…
— BSCN (@BSCNews) May 31, 2024
– According to @Token_Unlocks, the crypto markets are expecting a major supply shock across multiple altcoins in June 2024.
– Expected unlocks total nearly $875 million based on current price data.
-… https://t.co/BoUJl1sGqU pic.twitter.com/24gywwNmRC
Notably, this event appears to be bearish or likely to lead to a decrease in major Altcoin token prices due to the potential impact on the supply and demand dynamics of the market.
How Would It Impact Supply & Dynamics?
Similarly, when a large number of tokens are suddenly released into the crypto market, the supply of the asset increases dramatically. Correspondingly, if the demand for these tokens does not increase at the same rate, then the excess supply of those assets could lead to a decrease in their price.
Moreover, there happens to be another drawback to this event. If the unlocked tokens belong to investors who have been waiting for the opportunity to sell those unlocked crypto assets, they may do so.
Likewise, this would further add more selling pressure to the market. This could further drive down the asset prices, especially if a significant portion of the investors decide to sell their holdings shortly after the unlock event.
Summary
The expected token unlocks in June 2024 could lead to a bearish sentiment in the cryptocurrency market. If the new supply of tokens outpaces demand, this could potentially decrease the prices of the affected assets.
