The alternative cryptocurrencies (altcoins) market could see an extra dose of volatility this week as the impending token unlock schedule will free up billions of dollars of supply for several coins, including Ondo Finance’s ONDO token.
Data from Tokenomist shows that the weekly unlock schedule, which includes names like ONDO, ARB, STRK SEI and others, is worth $3 billion – the highest amount since November.
A decentralized platform focused on tokenization, ONDO from Ondo Finance represents a giant part of the tally.
On January 18, the project will release 1.94 billion ONDO worth $2.23 billion, which is equivalent to more than 130% of the token’s circulating supply of approximately 1.4 billion. ONDO’s impending unblocking is also several times higher than its daily trading volume, which has recently ranged between $250 million and $300 million.
Unlocks are staggered releases of initially frozen tokens to prevent early investors and project team members from liquidating the coins at the same time. Gradual release helps avoid rapid price fluctuations and market instability.
Yet every now and then we see ONDO-like unlocks that are larger in terms of the circulating supply of the token or the coin’s average daily volume, threatening to inject volatility into the market. According to research by The Tie, tokens unlocked equal to 100% of average daily volume experience volatility before and after the event.
ONDO changed hands at $1.14 at press time, the lowest since December 2, representing a 5% loss for the day and a nearly 15% decline since the start of the month. Prices have been in freefall since hitting record highs above $2.10 on Dec. 16, according to TradingView data.
