Crypto Market to See $638M in Token Unlocks as Altcoin Market Continues Bleeding
Over $638 million in token supply is scheduled to enter the crypto market over the next seven days, according to data from Tokenomist.
The upcoming releases arrive as the altcoin market remains under pressure with thin liquidity and weak buyer interest.
Tokenomist data shows several large one time releases planned between Feb. 2 and Feb. 9, each valued above $5 million.
HYPE leads by market value, with 9.92 million tokens worth over $300 million entering circulation.
XDC Network , Berachain , and Ethena will also see token releases worth around $30 million each.
Several projects are seeing daily token additions through linear schedules, exceeding $1 million per day. RAIN leads, with 9.41 billion tokens worth over $90 million set to enter circulation this week.
Solana is also set to release around 479,120 SOL tokens valued at $48.24 million, representing just 0.08% of circulating supply.
Other notable daily releases include Canton (CC), Official Trump , and River (RIVER).
Large supply releases bring newly tradable tokens into circulation. If these events come during a weak market phase, early holders often sell and add pressure on spot prices.
Altcoin Market in Stress
The scheduled token releases come as the broader altcoin market continues to weaken. On Feb. 2, total altcoin market capitalization fell by 4.4%, adding to past week's losses.
Ethereum dropped 9.5% over the past day, while major altcoins like BNB and XRP also recorded sharp drops.
According to data by TradingView, the altcoin market cap recently fell below its 100 day simple moving average. This level previously failed in May 2022 during the last bear phase.
The altcoin market has also broken down below the neckline of a classic head and shoulders pattern on the weekly chart.
This suggests that altcoins are in distribution, not accumulation. Historically, this leads to deep underperformance across the market.
Analysts warn that any near term altcoin rebound may result in short-term relief rallies rather than a sustained recovery.
Read original story Crypto Market to See $638M in Token Unlocks as Altcoin Market Continues Bleeding by Parth Dubey at Coinspeaker.com
