-
Crypto
tokens
DYDX,
OP,
SUI
dropped
sharply
ahead
of
their
large
token
unlocks,
underperforming
the
broader
Coindesk
Market
Index. -
Unlocks
increase
a
digital
asset’s
supply
and
allow
early
investors
to
sell
tokens.
Several
major
alternative
cryptocurrencies
including
native
tokens
of
dYdX
(DYDX),
Optimism
(OP)
and
Sui
(SUI)
dropped
Monday
as
massive
token
unlocks
weighed
on
prices
amid
a
generally
negative
day
on
the
broader
crypto
market.
Altcoins
face
almost
$650
million
worth
of
increase
in
their
supply
through
this
week,
according
to
data
from
Token.Unlocks
and
CryptoRank.
DYDX
will
see
roughly
$480
million
worth
of
tokens
added
to
its
circulating
supply,
almost
doubling
the
current
amount
of
tokens
on
the
market.
OP,
SUI,
Axelar
(AXL),
Immutable
X
(IMX)
and
1inch
(1INCH)
and
Hedera
(HBAR)
also
have
large
unlocks
scheduled
in
coming
days.
Token
unlockings
translate
to
an
increase
in
the
asset’s
supply,
releasing
coins
from
a
vesting
period
including
to
early
investors.
Large
unlocking
events
usually
lead
to
price
declines
due
to
the
supply
increase
outpacing
investor
demand
for
the
asset,
a
study
by
crypto
analytics
firm
The
Tie
found
earlier
this
year.
Axelar
(AXL)
dropped
10%
in
the
past
24
hours
as
about
$18
million
worth
of
tokens
–
some
5%
of
its
market
capitalization
–
were
added
to
its
supply
Monday
during
its
scheduled
monthly
token
unlock,
including
to
early
investors,
according
to
CryptoRank
data.
DYDX
was
down
7%
during
the
same
period
ahead
of
the
release
of
$480
million
worth
of
tokens
on
Dec.
1.
OP
declined
nearly
6%,
with
an
unlock
of
$40
million
in
tokens
looming
on
Nov.
30.
SUI
plunged
8.8%
during
the
day
as
its
supply
will
increase
by
$48
million
over
the
course
of
the
week.
1INCH
fell
over
4%
with
its
supply
set
to
increase
by
almost
10%,
or
$33
million,
on
Dec.
1.
HBAR
and
IMX
endured
2%-3%
declines
with
each
facing
$11
million
tokens
being
unlocked
this
week.