SUI, Optimism, ZETA set for $475 million cliff unlocks next week
- Tokenomist data revealed that the crypto market will witness a $475 million supply injection next week.
- SUI, OP and ZETA are the major focus with unlocks of $231 million, $64 million and $35 million, respectively.
- IMX, ADA and DYDX will also see cliff unlocks next week.
Tokenomist data on Friday revealed that the crypto market is set for a $475 million supply hike next week, led by SUI, Optimism and Zetachain (ZETA), with unlocks of $231 million, $64 million and $35 million worth of their tokens, respectively.
Crypto market braces for $475 million cliff unlocks next week
Next week, the crypto market will see unlocks totaling $475 million across several projects, including Sui (SUI), Optimism (OP), ZetaChain (ZETA), ImmutableX (IMX), 1inch (1INCH), Cardano (ADA), dYdX (DYDX), Yield Guild Games (YGG) and Ethena (ENA). The unlocks come as the crypto market continues to show bullish momentum.
Cliff unlocks are events where a project releases tokens to investors, community members or advisors. The supply increase often results in a decline in the token's price if demand does not keep pace.
Weekly Cliff Unlocks : 25 Nov - 1 Dec '24
— Tokenomist (prev. TokenUnlocks) (@Tokenomist_ai) November 22, 2024
$475.5m +
Unlock Highlights $SUI (2.26%) - $231.74m$OP (2.50%) - $64.56m$ZETA (10.41%) - $35.90m$IMX (1.47%) - $33.83m#1INCH (7.72%) - $33.67m$ADA (0.10%) - $32.68m
.
( % of cir. supply) pic.twitter.com/orCZxbvl7M
SUI will see the highest unlock volume next week with a cliff unlock of $231 million. SUI is down nearly 3% in the past 24 hours amid its impressive 80% monthly rally, marked by a new all-time high of $3.90.
However, the upcoming unlocks may impact SUI's positive trend as supply hikes often cause a decline in the prices of crypto assets.
Optimism (OP) will also witness supply injections worth $64 million. Optimism has seen remarkable gains in November, with an over 40% rise in the past week alone. The unlocked tokens — accounting for 2% of its current circulating supply — will be allocated to its team and private investors.
Likewise, ZETA, IMX and 1INCH will add $35 million, $33.8 million and $33.6 million to their circulating supply. IMX and 1INCH already have over 80% of their total supply unlocked, indicating that this supply injection may not have a sizable impact on their prices.
Other projects that will see unlocks include Cardano, DYDX, Ethena and YGG, with supply hikes of $16 million, $10 million, $7.7 million and $7.2 million, respectively.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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