Axie Infinity, Space ID, Euler brace for volatility over imminent $25.91 million worth in cliff token unlocks
- Crypto tokens worth $25.91 million are set to be unlocked this week, data from TokenUnlocks shows.
- AXS, ID, EUL feature among tokens with the largest volume in unlocks this week, supply ranging from 0.84% to 5.30%.
- With a significant amount of tokens paid out in the cliff unlocks, volatility expectations linger over imminent selling pressure.
Axie Infinity (AXS), Space ID (ID), and Euler (EUL) holders brace for a volatile week as community members watch the countdown to the token unlocks events scheduled for this week. The events come as Bitcoin (BTC) price has investors guessing, steadily sliding lower without any clear signs of a breakout.
Token unlocks to watch out for this week
Axie Infinity, Space ID, and Euler are the biggest unlocks to watch out for this week, with a total of $25.91 million worth of tokens set to be paid out in the cliff unlocks. Unlike the linear method of unlocks, where the tokens are paid out on a linear schedule, say monthly or yearly, thus delivering some level of price stability, cliff unlocks are different.
In cliff token unlocks a specified amount of tokens are unlocked after a specified duration, disturbing market stability. This is because of enhanced selling as token holders look to book profits before supply-demand dynamics settle in when more tokens are released to the market.
For EUL, the non-custodial permissionless lending protocol token, which runs on the Ethereum (ETH) network, 0.84% of its circulating supply is set to be unlocked on July 19, constituting 415,290 tokens. On July 22, metaverse crypto AXS will see up to 3% of its supply unlocked, constituting 21.48 million tokens. 3.99 million ID tokens will be unlocked on the same day, denoting up to 5.30% of the asset's circulating supply.
Source: TokenUnlocks
AXS, ID, EUL investors brace for token unlocks
As crypto market participants continue to accumulate based on the sell-the-news events around the token unlocks schedule, Euler price action stands out after rallying 45% since July 13. AXS is also up almost 35% since the mid-June lows.
AXS/USDT 1-Day Chart, EUL/USDT 1-Day Chart, ID/USDT 1-Day Chart
With these tokens' prices rallying in the weeks and days leading up to the unlock, investors should brace for a possible mass sell-off on the day of the event. Additionally, AXS, EUL, ID, and other altcoins will likely be affected if Bitcoin price pulls back.
For details of how a BTC retracement would harm altcoins, read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC pullback could harm altcoin gains
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Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
