The crypto world is gearing up for significant events as major token unlocks are expected over the next seven days. These events may lead to increased market volatility.
Major Token Unlocks
Tokenomist reports that between March 18 and 24, more than $428 million worth of tokens will be released into the crypto space. This could shake up traders as such releases often bring price changes. Polyhedra Network (ZKJ) is set to release 15.53 million ZKJ tokens on March 19, making up roughly 25.72% of its circulating supply, marking the largest token unlock.
Impact of Unlocks on the Market
These unlock mechanisms control the flow of new tokens into circulation, preventing massive sell-offs by early investors or project teams. However, this process often puts short-term pressure on prices. Solana (SOL) fell 9% to its lowest level since mid-October due to pre-release sales of 11.2 million SOL from the FTX bankruptcy estate.
Risk Factors for Investors
The upcoming token unlocks coincide with a period of broader market fluctuations. Escalating US-China trade tensions, along with the Federal Reserve's interest rate hikes, make investors more cautious. These global issues add additional uncertainty to the market.
This week will be crucial for the crypto market, but global issues like US-China tensions and high interest rates are adding extra uncertainty. Traders should monitor these factors closely to make informed investment decisions.
