Several cryptocurrency prices could see significant volatility this week as seven projects are set to unlock nearly $200 million worth of new tokens. A sudden influx of new supply can temporarily put downward pressure on prices. Compounding this, key economic data releases are also on the calendar, demanding extra attention from investors.
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ASTER, LayerZero, and Arbitrum are responsible for the largest unlocks, but smaller projects are also releasing new tokens into circulation. This combination could lead to more market movement than usual.
Large Token Unlocks Add Supply #
ASTER kicks off the week with the largest release. The project, which offers a decentralized exchange, is unlocking over 78 million tokens. This amount is valued at more than $75 million and represents over three percent of the project’s total market capitalization, which could be enough to temporarily pressure the price.
LayerZero follows with nearly 25 million new ZRO tokens, valued at over $37 million. LayerZero is a technology that enables different blockchains to communicate with each other, an increasingly important function in the crypto industry.
Arbitrum is also releasing a significant number of new tokens this week: over 92 million ARB tokens, worth nearly $20 million. Arbitrum is a scaling solution for the Ethereum network that makes transactions faster and cheaper.
Smaller Projects and Key Economic Data #
In addition, Vana, Yooldo Esports, STBL, and Merlin Chain are also unlocking new tokens. STBL is particularly noteworthy, as the project is unlocking more than 57 percent of its total market capitalization at once. Such a large increase in supply can cause extra price swings.
Beyond the token unlocks, economic data will also play a major role this week. Tuesday is important due to new data on the U.S. labor market.
Thursday will focus on inflation figures, which often have a direct impact on Bitcoin and altcoins. On Friday, a series of sentiment indicators, such as consumer confidence and inflation expectations, will be released, which investors should watch closely.
The combination of major token unlocks and a busy macroeconomic calendar makes this an especially exciting week for the crypto market. In particular, December 15, 16, 19, and 21 are days to keep a close eye on.