Analysts often emphasize that the complex structure of the cryptocurrency market is too deep to be understood by price charts and fundamental analysis alone. Recently, when attention turns to token unlocking processes of crypto projects, this becomes a clearly understandable fact. Analysts such as Altcoin Buzz recommend that investors pay attention to such events to effectively strategize their portfolio management.
The month of May is particularly notable as a number of major token unlocks are planned. These events could have significant implications not only for token holders, but also for the entire crypto market. However, most of the time such token unlocking programs are ignored or ignored by investors.
Analyst Altcoin Buzz highlighted the importance of such unlocking events in a recent video post. These transactions, which often involve the circulation of restricted tokens, can encourage token sales among investors, including project teams and early backers. This can lead to price fluctuations and therefore significant changes in market dynamics. For investors, paying attention to such events is vital to strategic portfolio management. The timing and impact of unlocks may require investors to make the right moves to protect their assets and get the best returns.
The analyst highlighted four major token unlock events planned for May, focusing on projects in the top 30 by market cap:
Aptos: The Aptos project is set to unlock 11.31 million APTs, worth tens of millions of dollars. According to the statements made, a significant amount of tokens were released in similar structured unlocking programs before this event.
Aevo: Aevo, on the other hand, will unlock 8.13 billion tokens worth over $1 billion, scheduled for mid-May. It is predicted that this event, which constitutes 80% of the total supply, will create downward pressure on prices.
PYTH Network: PYTH stands out as an Oracle platform that rivals Chainlink. The fact that it will unlock 2.13 billion tokens worth over $1 billion could have a negative impact on prices.
Avalanche: Avalanche is known for its fast and scalable blockchain solutions. While it was announced that 9.54 million AVAX will be unlocked, it is stated that previous similar events had minimal impact on prices. However, this event is likely to impact market sentiment.
While some altcoin projects may experience minimal price impact due to token unlocks, others, especially those with significant unlocks, may face significant sell-offs, leading to temporary price declines.
You can access current market movements here.
