Next week, several major crypto projects will unlock a significant number of tokens. This can affect market dynamics, so it’s essential to keep an eye on these developments. Here are the details:
Project | Unlock Date | Tokens Unlocked | Current Circulating Supply |
Immutable | June 14 | 25.5 million | 11.48 billion |
Cyber | June 14 | 886,120 | 22.3 million |
Starknet | June 15 | 64 million | 1.3 billion |
Arbitrum | June 16 | 92.6 million | 2.9 billion |
Token Unlocks: Immutable (IMX)
- Unlock Date: June 14
- Tokens Unlocked: 25.5 million IMX
- Current Circulating Supply: 11.48 billion IMX
A Layer-2 solution for scaling NFTs – Ethereum’s Immutable. It aims to offer faster and cheaper transactions for NFT enthusiasts. In September 2021, Immutable raised $12.5 million on CoinList in just one hour. By March 2022, the project secured another $60 million and later $200 million from investors like ParaFi Capital, Declaration Partners, and Tencent Holdings.
On June 14, the circulating supply of IMX will increase by 25.5 million tokens. These new tokens will be used to fund project development and enhance the Immutable ecosystem.
Token Unlocks: Cyber (CYBER)
- Unlock Date: June 14
- Tokens Unlocked: 886,120 CYBER
- Current Circulating Supply: 22.3 million CYBER
Cyber, formerly known as CyberConnect, is a decentralized social graph protocol on the BNB Smart Chain. It helps users create and manage social connections across various platforms. The native token, CYBER, lets holders buy CyberIDs, vote on protocol enhancements, and pay transaction fees.
The upcoming unlock represents nearly 4% of CYBER’s circulating supply. Though smaller in number, this release is still significant for the project and its community.
Token Unlocks: Starknet (STRK)
- Unlock Date: June 15
- Tokens Unlocked: 64 million STRK
- Current Circulating Supply: 1.3 billion STRK
Starknet is working on a ZK-Rollup Layer-2 solution to scale decentralized applications on Ethereum. The STRK token was introduced to decentralize the network further.
According to Diego Oliva, CEO of Starknet Foundation, “The STRK Token helps Starknet scale in a decentralized way, run, and managed by the community.” On June 15, 64 million STRK tokens will be unlocked and distributed to investors and early contributors.
Token Unlocks: Arbitrum (ARB)
- Unlock Date: June 16
- Tokens Unlocked: 92.6 million ARB
- Current Circulating Supply: 2.9 billion ARB
Arbitrum is a popular Layer-2 solution for Ethereum, developed by Offchain Labs. Its mainnet launched in August 2021, backed by investors like Lightspeed Venture Partners, Polychain Capital, and Coinbase.
Next week, Arbitrum will unlock 92.6 million ARB tokens, valued at around $92.59 million.
Other Token Unlocks
Next week, there are also significant unlocks for Moonbeam (GLMR), dYdX (DYDX), and Render (RNDR). The total value of these unlocks exceeds $232.53 million. While some see token unlocks as bearish, a well-planned unlock schedule can enhance a project’s long-term health. Properly timed unlocks aligned with milestones can motivate team members, boost community engagement, and promote ecosystem growth.
Keeping an eye on these token unlocks can provide valuable insights into market movements and project developments.
Disclaimer
FAQ
NFTs are unique digital assets stored on blockchains, representing various digital items.
To create a unique NFT, you mint it by uploading a digital file to a blockchain platform.
NFTs can be a good investment for collectors, but research and understanding risks are essential.
The Driving Forces Behind the Crypto Surge
The recent surge in cryptocurrency prices results from several driving forces, including the rising expectation of approving a spot Bitcoin ETF, the successful Ethereum network upgrade in Shanghai, and the approaching Bitcoin halving event— which is less than 180 days away.
The US Market and the Bitcoin ETF
Turning our attention to the US market, discussions about Bitcoin ETFs are steadily increasing. According to Bloomberg’s ETF analysis, the odds of approving a spot BTC ETF by January 10— the final statutory deadline set by the US Securities and Exchange Commission for judgment on some of the applications— are estimated to be 90%. If the SEC authorizes it, such an ETF might attract additional institutional capital, consequently raising the prices of other cryptocurrencies alongside bitcoin.
Prominent Bitcoin Backers on the Rise
Furthermore, prominent Bitcoin backers are demonstrating their faith in cryptocurrency by expanding their holdings. Glassnode’s on-chain data reveals a reversal in the trend, with long-term investors continuing to increase their holdings due to their optimism about the possibility of a Bitcoin bull run. This trend reversal, observed in every market cycle, involves a clear accumulation of holders until a local price peak emerges, prompting holders to sell in large volumes to realize gains.
Whale Accumulation and Market Pinnacle
Notably, large price increases have typically been preceded by accumulation from Bitcoin “whales” or entities holding at least 1,000 BTC. The Accumulation Trend Score for Bitcoin, currently at 1 as shown in the chart below based on Glassnode’s study released on November 27, indicates that whale entities— accounting for a major fraction of the network— are generally getting bigger. This ongoing accumulation suggests that the market for cryptocurrencies, in general, and the flagship coin specifically, has not yet reached its pinnacle.
Historical Trends and Bullish Cycles
Examining historical trends, the price movements of bitcoin frequently exhibit cyclical patterns. Scholars have noted resemblances between past and present price trends, hinting at the possibility of a bullish cycle akin to those witnessed in 2013 and 2017. Previous Bitcoin bull runs have typically followed four-year cycles triggered by events such as supply reward halving, which reduces the rate at which miners can create and earn new Bitcoin. The next halving event is scheduled for the spring of 2024, but bull runs usually commence months in advance and last until the price of Bitcoin reaches a new record high.
Rising Market Sentiment: Fear and Greed Index
Moreover, market sentiment continues to rise, as evidenced by the Crypto Fear and Greed Index standing at a notable score of 73— indicating prevailing “greed” in the market. This index has consistently remained above the 50 marks for the better part of 2023, signifying the positive sentiment that market players hold for the wider crypto market. This pattern in market sentiment may portend an impending bull run, historically preceding price gains. Notably, the index last reached this level of greed in November 2021 when Bitcoin achieved its all-time high price of $69,000.
Technical Indicators Reflecting Bullish Sentiment
Technical indicators also align with traders’ bullish sentiment, as total crypto market capitalization broke above the 50-week exponential moving average (EMA) at $1.1 trillion on Oct. 23. Buyers have potentially set their target on the April 2022 range high at $2.168 trillion— an expected average 33% gain across the market. If purchasers establish stability beyond the $1.75 trillion threshold with favorable volume, the three-month-long upward trend may continue until 2024.
Conclusion
In conclusion, the data suggests that a crypto bull market commenced in 2023 and is poised to continue throughout 2024. The rising hopes for a spot Bitcoin ETF approval, the successful Shanghai upgrade for the Ethereum network, and the upcoming BTC halving event collectively drive prices higher. Market sentiment is on the rise, with significant Bitcoin stakeholders showing confidence in BTC by increasing their holdings. Additionally, technical indicators reflect traders’ bullish sentiment as total crypto market capitalization breaks above key resistance levels. As we head into the next year with optimism, we anticipate continued growth in this exciting space!
Disclaimer
FAQ
Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.
Cryptocurrency wallets are digital tools for storing and managing your crypto assets.
Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.
