• The crypto market is experiencing a bullish trend, with some tokens exhibiting even greater growth.
• The trigger for this impressive rally is often the upcoming NFT or token unlock, where more tokens come into circulation.
• Examples of tokens that have seen impressive gains due to a token unlock include Aptos (APT), Moonbeam (GLMR), Axie Infinity (AXS), and dYdX (DYDX).
The crypto market is experiencing a surge in bullish sentiment, with the prices of some tokens climbing higher than ever before. Tokens such as Aptos (APT), which rose more than 450% in three weeks, and Moonbeam (GLMR), Axie Infinity (AXS), and dYdX (DYDX) which each doubled or nearly doubled their value over the same time, have been dominating headlines and garnering investor interest.
The trigger for this impressive rally is often the upcoming NFT or token unlock, where more tokens are released into circulation. This event is usually considered to be bearish as it increases the token supply, but for some tokens it has resulted in a surge in price.
One example is dYdX (DYDX), the governance token of the decentralized exchange dYdX. The asset increased by more than 128% in the first three weeks of the year, despite no announcements on the dYdX protocol upgrade, partnership, or other important news. The price surged on January 25, when it was announced that the token unlock would be postponed until December 1, 2023, resulting in a steep 52% u-turn in the asset’s price.
Another example is Ronin (RON), an Ethereum Virtual Machine (EVM) based blockchain for game developers. On January 27, 2023, 22.19 million RON tokens were unlocked, accounting for 2.2% of the token’s one billion total supply. The price of RON jumped by 25% in the three days before the scheduled token unlock, further contributing to its steady 180% growth in a month.
The impressive rallies in price seen before token unlocks suggest that investors are anticipating the increased liquidity and increased use cases that come with more tokens entering circulation. This is a positive sign for the crypto market and could result in further bullish sentiment in the coming weeks and months.