Several prominent crypto projects are set to unlock their tokens this week. As the market is now in a green market, this move could affect the token price.
Layer 2 Network Optimism is one of 10 crypto projects to unlock tokens this week.
On May 31st, 3.6% of the OP token supply will be unlocked. This equates to his 154.6 million tokens worth approximately $255 million. According to Token Unlocks, this is the first major unlock for a group of major contributors and investors.
Optimism’s schedule is for a linear release of 4.7 billion coins through August 2026. Currently, 67% of his total supply remains locked.
Plenty of token unlocks
Unlocking a token usually dilutes the supply and puts downward pressure on the price. The OP rose 1.6% today to trade at $1.65, down 49% from its all-time high of $3.22 in February.
On May 30th, Sweatcoin (SWEAT) and Galxe (GAL) will be released. Sweatcoin he unlocks about 3.2 million tokens per day, while Galxe releases 586,666 tokens.
STEPN, Hedera and Acala will be unlocked on June 1st, and 1inch and Nym tokens will be released on June 2nd.
On June 3rd, 61 million SUI tokens worth approximately $63.7 million will be released. In addition, Sui Tokennomics is heavily weighted in its venture capital with a large amount of tokens allocated to insiders, investors and foundations.
The price of SUI rose 3.4% on the day, to $1.04 at the time of writing. However, the token has been on a downward trend since its launch, 52% below its peak price of $2.16 earlier this month.
Trader Joe’s (JOE) is also releasing tokens linearly every day, but only 2% of its supply remains locked.
Debt ceiling agreement boosts cryptocurrency market
The cryptocurrency market surged 2.8% today to reach a three-week high of $1.21 trillion. The momentum has been driven by the U.S. government agreeing to a deal to end the debt ceiling.
Last weekend, President Joe Biden and Congressional Republican Kevin McCarthy finally reached a deal to lift the debt ceiling until January 2025.
This effectively means there is no limit to how much additional debt the government can take. In addition, the move increased risk appetite and moved the market.
Bitcoin rose 3.3% on the day, reaching $28,075 at the time of writing. This is the highest price for the asset since May 8th. Ethereum surged 2.9% over the past 24 hours to break above $1,900.
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