The cryptocurrency market is facing increased volatility as significant token unlocks are expected for popular assets like BERA, SEI, AVAX, and others.
Token Unlocks Increase Supply
Market data suggests that the unlocked tokens could significantly increase the total supply. This surge in supply, combined with existing market contraction, can lead to uncertainty and volatility. For instance, the release of BERA tokens resulted in a percentage-based decline in its value, prompting cautious behavior from traders and reshaping market dynamics.
Market Expectations and Potential Risks
Market participants indicate that the increase in supply due to token unlocks could lead to fluctuations in the cryptocurrency market. The current fragile market conditions may bring along greater risks, as these price declines are seen as one of the fundamental factors influencing the market in the short term.
These developments are prompting traders to devise new strategies. Those looking to minimize the impact of market volatility are closely monitoring the token unlock dates and are advised to adopt a cautious approach given the increasing supply.
