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An early “crypto winter” has arrived on the altcoin market

The altcoin segment is facing an early “crypto winter”, which is largely due to the large volume of token unlocks in 2024, writes Bloomberg.

According to media reports, early investors in projects seek to quickly sell the received tokens, wanting to lock in short-term profits. At the same time, they do not want to keep unlocked altcoins on their balance sheet with an eye to growth in the future, the material says.

Platform data Token Unlocks, which tracks 138 projects, indicates that 120 of them should unlock tokens in 2024. The total market value of this volume of assets is estimated at $58 billion, analysts say. More than $660 million worth of tokens will be unlocked this June alone.

Edward Chin, co-founder of the investment company Parataxis Capital, believes that massive sales of such assets are putting strong pressure on the altcoin market. At the same time, brokers are often faced with the need to offer potential buyers tokens from early investors at a discount of up to 40%, the expert emphasizes.

As an example, the material mentions the dYdX (DYDX) project, which over the past three months has dropped by 61%, according to TradingViewAt the time of writing, the asset rate is at $1.4, and its market capitalization is $838 million.

A similar situation, according to experts, is observed in the Pyth Network (PYTH) and Avalanche (AVAX) projects. Over the same period, their tokens fell by 55% and 66%, respectively.

At the same time, analysts point to the fact that all three projects carried out the unlocking in May 2024.

The authors of the material refer to data from the CCData platform and note that the situation with altcoins is aggravated by the general volatility of the market. Of the more than 90 largest crypto assets by market capitalization, only 12 have shown positive returns since mid-March 2024, the media emphasized.

About 80 projects show negative dynamics in this indicator, according to statistics. At the same time, the price of 23 assets fell by more than 50%, experts summed up.

Source: Cryptocurrency

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