Altcoin rise stops ahead of huge unlock worth $650 million | CoinDesk JAPAN

• DYDX, OP, and SUI plummeted ahead of the large-scale unlock, underperforming the overall crypto market.
• Once unlocked, the supply will increase and early investors will be able to sell their tokens.

Some of the major altcoins, such as blockchain native tokens dYdX (DYDX), Optimism (OP), and Sui (SUI), announced on the 27th that large-scale unlocks are on the horizon amid a decline in the overall cryptocurrency market. The situation weighed on it, causing it to decline.

Approximately $650 million unlocked this week

According to data from Token.Unlocks and CryptoRank, the total supply of altcoins is expected to increase by approximately $650 million (approximately 97.5 billion yen, equivalent to 150 yen to the dollar) this week.

DYDX’s circulating supply is expected to increase by approximately $480 million, nearly double the amount currently in circulation. OP, SUI, Accelerator (AXL), Immutable (IMX), 1INCH, and Hedera (HBAR) are also scheduled for major unlocks in the coming days.

Unlocking crypto assets will lead to increased supply and allow early investors to sell their tokens. A study conducted this year by analytics firm The Tie found that large-scale unlocks typically lead to lower prices as increased supply outstrips investor demand.

The decline has already started

According to CryptoRank data, Accelerator has fallen 10% in the past 24 hours. The monthly unlocking, which took place as scheduled on the 27th, increased supply by approximately $18 million (approximately 5% of market capitalization), including tokens granted to early investors. is in the background.

During the same period, DYDX, which is scheduled to unlock $480 million worth on December 1st, fell 7%.

Optimism, which is scheduled to unlock $40 million on Nov. 30, fell nearly 6%.

SUI fell 8.8% on the day as supply increased by $48 million this week.

1INCH, which had a nearly 10% increase in supply to $33 million on Dec. 1, fell more than 4%. Hedera and Immutable, both set to unlock $11 million this week, fell 2% to 3%.

Meanwhile, Bitcoin (BTC) fell by 0.7% during the same period, and the CoinDesk Market Index (CMI), which measures the performance of the entire crypto asset market, fell by 1.5%.

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Altcoin Rally Cools as Massive $650M Worth of Token Unlocks Loom Over Crypto Market