The alternative cryptocurrency (altcoin) market may experience an additional dose of volatility this week, as the impending token unlock schedule will unlock billions of dollars in supply for several coins, including Ondo Finance’s ONDO token.
Tokenomist data shows that the weekly unlock schedule, which includes names like ONDO, ARB, STRK SEI and others, is worth $3 billion, the largest amount since November.
ONDO, the tokenization-focused decentralized platform Ondo Finance, accounts for a giant chunk of the total.
On January 18, the project will release 1.94 billion ONDO worth $2.23 billion, which is equivalent to more than 130% of the token’s circulating supply of around 1.4 billion. ONDO’s impending unlock is also several times larger than its daily trading volume, which has recently ranged between $250 million and $300 million.
Unlocks are staggered releases of initially frozen tokens to prevent early investors and project team members from liquidating coins at the same time. Gradual release helps avoid rapid price swings and market instability.
However, occasionally, we see ONDO-like unlocks that are larger in terms of the token’s circulating supply or the coin’s average daily volume, which threatens to inject volatility into the market. According to research by The Tie, tokens facing unlocks equivalent to 100% of the average daily volume experience volatility in the period leading up to and following the event.
ONDO changed hands at $1.14 at press time, the lowest level since December 2, representing a 5% loss on the day and a nearly 15% drop so far this month . Prices have been in free fall since hitting all-time highs above $2.10 on December 16, TradingView data shows.
