Tokens To Watch: $175M Surge in Supply Spells Price Pressure for ARB, WLD, STRK

The upcoming week promises significant movements in the crypto market with over $175 million worth of token unlocks on the horizon. Key tokens, including Arbitrum (ARB), Optimism (OP), and Starkware (STRK), will see their circulating supply increase. Historically, these events tend to exert downward pressure on token prices. Consequently, investors and traders are closely monitoring these developments to anticipate potential market shifts.

Token unlocks are events where a cryptocurrency project releases new tokens into circulation, increasing supply and often causing price declines. According to data from TokenUnlocks, ARB, STRK, and Worldcoin (WLD) will experience the largest unlocks next week. Specifically, ARB will see $64.31 million, WLD $39.79 million, OP $17.0 million and STRK $36.30 million worth of tokens released. These substantial unlocks could intensify the ongoing downtrend in their prices.

ARB has a history of price declines following token unlock events. For instance, during its last major unlock in March, ARB’s price increased by 3.33%. This historical pattern suggests that the upcoming unlock could lead to further price increase for ARB.

WLD faces a particularly challenging month with a total of $628.17 million worth of unlocks scheduled for July. This significant influx of new tokens could exert considerable downward pressure on WLD’s price. Investors should remain cautious and closely watch the market reaction.

ENA and 1INCH are also set for another round of token unlocks next week. Previously, ENA experienced an unlock worth $6 million, while 1INCH saw $11,000 worth of tokens released between July 7-8. Both tokens have already shown slight declines of about 1% in the past 24 hours. These additional unlocks could further influence their market performance.

In contrast, OP and RNDR have shown some resilience. Both tokens are up approximately 1% in the past 24 hours. However, their upcoming unlocks may alter this trend. As more tokens enter circulation, the increased supply could lead to price declines, despite their recent positive performance.

Besides these major players, other tokens such as AXS, APE, PIXEL, MATA, CYBER, ASTR, NYM, EUL, and FORT are also slated for unlocks. These tokens will collectively add to the $175.77 million worth of new tokens entering the market next week. Investors should remain vigilant as these events could create volatility across the crypto landscape.