Solana (SOL), Sui (SUI), Worldcoin (WLD), Immutable (IMX), and ZetaChain (ZETA) are at risk of price declines ahead of major token unlocks.
Major Token Unlocks and Market Risk
The 5 cryptocurrencies are preparing to unlock tokens worth over $329 million in total. This could create a supply shock in the market, leading to price drops. The planned unlock of Sui on October 1st will release 64.19 million SUI ($95.65 million). This corresponds to 2.40% of SUI’s circulating supply, a size that could cause market volatility.
Sui’s total locked value (TVL) exceeding $900 million shows that the altcoin has attracted great interest from market participants. Considering the bullish expectations expected for the last quarter, a surprise move may also be seen.
Solana and Worldcoin
Solana will also unlock 524,030 SOL ($74.97 million) on September 23-30. This is 0.11% of the circulating supply, so the price impact may be limited. The activation of the Frankendancer upgrade and institutional adoption of Solana provide a positive outlook for SOL.
Worldcoin will unlock 37.23 million WLD in the same period. These tokens account for 8% of WLD’s circulating supply. Worldcoin’s launch of an identity verification service in Poland could boost investor confidence. If it can grow its user base in the European region, the decline could reverse with the support of OpenAI’s CEO.
Immutable and ZetaChain
Immutable will unlock 32.47 million IMX ($53.58 million) on October 4. This represents 2% of the altcoin’s circulating supply and could put pressure on the price. IMX’s appreciation of over 46% in the last seven days could signal a possible price correction. A pullback is now possible as the Coinbase listing was also completed hours ago.
ZETA is at the highest risk of selling pressure with 53.89 million tokens unlocked on Oct. 1, equivalent to 13% of its circulating supply. Zetachain’s progress in promoting blockchain interoperability supports ZETA’s positive outlook.
The upcoming token unlocks for these five cryptocurrencies could cause significant market volatility. Investors should assess the impact of these tokens on supply and potential selling pressure. However, positive developments in the underlying projects and market expectations could offset potential price declines.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
