Beware of selling pressure! Eight major tokens, including LayerZero and Plasma, will see a large unlock this week, totaling nearly $144 million.

Token Unlocks data shows that several Tokens including LayerZero (ZRO), Plasma (XPL), and MBG will have large unlocks this week, totaling approximately $144 million. Among them, LayerZero (ZRO) will unlock about 25.71 million Tokens at 7 PM Beijing time on October 20, valued at approximately $44.2 million, accounting for 7.86% of the current Circulating Supply, making it the highest valued project in this round of unlocks. Investors need to closely follow these large unlock events for potential dumping pressure on the market.

Overview of Large Unlocks: LayerZero Leads the Unlock Value Rankings

This week (starting from October 20th), the cryptocurrency market will witness multiple large Token unlocks, involving eight projects.

Key Project Unlock Data

· LayerZero (ZRO)

· Unlock time: 7 PM Beijing time on October 20

· Unlocking Amount: Approximately 25.71 million coins

· Value: Approximately $44.2 million

· Circulating Supply ratio: 7.86%

· Plasma (XPL)

· Unlock time: 8 PM Beijing time on October 25

· Unlock Quantity: Approximately 88.89 million coins

· Value: approximately 36.9 million USD

· Circulating Supply Ratio: 4.97%

· MBG (MBG)

· Unlock time: 8 PM Beijing time on October 22

· Unlocking Amount: Approximately 15.84 million coins

· Value: approximately 17.1 million USD

· Circulating Supply ratio: 11.97%

Other unlocking projects worth following

· Scroll (SCR): On October 22, Beijing time, approximately 82.5 million tokens will be unlocked at 8:00 AM, worth about 14.4 million USD, accounting for a circulating supply ratio as high as 43.42%.

· SOON (SOON): On October 23, at 4:30 PM Beijing time, approximately 15.21 million tokens will be unlocked, worth about 12.8 million USD, accounting for a circulating supply ratio of 4.52%.

· KAITO (KAITO): On October 20, at 8 PM Beijing Time, approximately 8.35 million coins will be unlocked, worth about 8.7 million USD, accounting for a circulating supply ratio of 3.06%.

· Humanity (H): On October 25th, 2023, at 8 AM Beijing time, approximately 62.5 million tokens will be unlocked, valued at about 7.3 million USD, accounting for a circulating supply ratio of 3.01%.

· Venom (VENOM): On October 25th at 4 PM Beijing time, approximately 59.26 million tokens will be unlocked, worth about 6.2 million dollars, accounting for a circulating supply ratio of 2.23%.

Project Background Focus: KAITO, Plasma and SOON positioning

Understanding the background of these unlocking projects helps to assess their community and market foundation, thereby determining the potential selling pressure risk.

KAITO: AI powered Web3 information platform

· Core Value: KAITO is an AI-driven Web3 information platform dedicated to solving the problem of information fragmentation in the cryptocurrency industry. It aggregates various data sources such as social media and governance forums, using AI technology to provide real-time search, sentiment analysis, and trend tracking.

· This unlock: The number of this unlock is approximately 127 million coins, worth about 14.9 million USD.

Plasma: A Layer 1 designed for stablecoin payments.

· Technical positioning: Plasma is a Layer 1 blockchain specifically designed for global stablecoin payments. It integrates high throughput, stablecoin native functionality, and full EVM compatibility, providing the infrastructure for developers to build the next generation of payment and financial applications.

· Features: Supports customizable Gas tokens, zero-fee USDT transfers, and privacy payments.

· This unlocking: The number of this unlocking is approximately 15.61 million coins, valued at about 5.93 million USD.

SOON: High-performance Rollup stack based on SVM

· Technical Positioning: SOON is a Rollup stack based on the Solana Virtual Machine (SVM), focusing on high-performance blockchain solutions.

· Goal: Compared to traditional public chains, SOON is committed to providing more efficient and lower-cost infrastructure to support the large-scale implementation of Web3 applications.

· This unlock: The number of tokens unlocked this time is approximately 95.99 million, worth about 30.91 million USD.

Market Impact and Investment Strategies of Unlocking Events

Token unlocks, especially when they account for a high proportion of the Circulating Supply, usually exert downward pressure on market prices, as tokens held by early investors or teams enter circulation and may be sold.

Scroll faces its biggest challenge

· High Circulating Supply Ratio: The unlocking of Scroll accounts for up to 43.42% of the current circulating supply. Although the amount unlocked is not the highest, its dilution risk is the greatest, and investors should be especially wary of its short-term volatility.

Trader Strategy

· Short-term risk: Traders should avoid high-risk operations near the token unlocking time. For investors planning to hold long-term, attention can be paid to potential short-term price lows that may occur after the unlocking.

· Follow the fundamentals: For projects like LayerZero that have strong fundamentals and ecological narratives, short-term selling pressure does not change long-term value, but risk management is still necessary.

Conclusion

Next week, the unlocking of nearly $144 million worth of Tokens will undoubtedly be a test for the market. The large unlocks led by LayerZero, along with the high Circulating Supply ratio of projects like Scroll, may increase market volatility and downward pressure in the short term. It is advised that investors develop prudent risk management and trading strategies based on the fundamentals of the projects and the specific timing of the unlocks to cope with the upcoming potential dumping.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.