April’s Unlock Saga: Analyzing the Impact of Token Releases on Crypto

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As April approaches, the crypto market braces for a wave of token unlocks, with 330 billion dollars worth of tokens set to enter circulation across various projects. Token unlocks, while sometimes viewed as potential sell pressure, also present opportunities for investors. 

The market is on its edge with the largest unlock on April 15 by BitDAO (BIT) will release nearly $1 billion worth of tokens, followed by APECoin (APE) with over $66 million and Aptos (APT) with over $52 million worth of tokens set to be unlocked.

Let’s delve into five standout projects identified by crypto analyst AlΞx Wacy:

Analysing Top 5 Tokens Stand Out 

Large token unlocks in April :
• $DYDX – $117M April 1
• $SUI – $129M April 3
• $EEFI – $12M April 4
• $DYM – $23M April 6
• $GMT – $40M April 9
• $CGPT – $15M April 10
• $APT – $428M April 12
• $NGL – $35M April 12
• $SEI – $106M April 15
• $ZBC – $11M April 15
•… pic.twitter.com/Nq3r0oGjTM

— AlΞx Wacy (@wacy_time1) March 29, 2024

Entangle (NGL) – Unlock: $35M on April 12

The analyst has a keen interest in Entangle’s $35 million unlock that coincides with several catalysts, including its mainnet launch and staking features. With NGL positioned as the gas token for the BORPA launch, bullish sentiments are prevalent, with some predicting targets exceeding $10. The potential for substantial ecosystem growth may mitigate significant sell pressure.

Aptos (APT) – Unlock: $428M on April 12

Despite Aptos’ massive $428 million unlock, analyst suggests that the alt season may not have peaked, potentially allowing APT to appreciate further before any significant selloff occurs. However, shorting APT around this unlock could be considered risky.

Dymension (DYM) – Unlock: $23M on April 6

In the meanwhile, Dymension’s unlock, primarily a linear token endowment for the ecosystem, is unlikely to exert significant sell pressure. The perk of staking rewards may continue to attract investors, driving both price appreciation and participation in staking.

Starknet (STRK) – Unlock: $141M on April 15

Positioned as a ZK-rollup, Starknet presents a promising investment opportunity with potential returns of 3x-5x from current levels. The unlock coinciding with the accumulation phase before a potential rally aligns with investor sentiments seeking profit maximization over the long term.

AltLayer (ALT) – Unlock: $61M on April 25

Rounding off the list with the next-gen blockchain, AltLayer taps into the narrative of identifying high-return opportunities in bull markets. While still speculative, ALT appeals to investors seeking higher risk/reward exposure, especially when considering sizable positions.

Overall, the market will closely monitor these token unlocks and their impact on token prices and project trajectories. As always, investors are urged to conduct thorough research and exercise caution when navigating the volatile crypto landscape.