Key Takeaways:
- Immutable X and Galxe will release $10-15 million worth of tokens.
- dYdX and Sui Network will join the token unlock on Oct. 30-31.
- Will Acala’s ACA coin drop more than 98% below its all-time high?
YEREVAN (CoinChapter.com) — At least five cryptocurrency projects have their token unlocks scheduled in the week ending Nov. 5, 2023. Let’s discuss how many tokens will enter supply and their potential price impact.
#1 Immutable X Will Unlock $15M Worth of IMX Token
Immutable X, an Ethereum scaling Layer 2 solution, will unlock nearly 23 million IMX tokens on Nov. 4, 2023. Notably, the platform has unlocked approximately 2% of the monthly supply since November 2021.
In detail, a token unlock event releases a certain percentage of the token supply. It means the unlock could drop a coin’s price due to a correlation between the growing supply and the (presumably) steady demand.
Thus, look at the previous 2023 crypto token unlocks to see whether they affected the price.
Judging by the graph below, the influence of the unlocks has been erratic in the two days following the unlock, ranging from -17% to +6%.
As of Oct. 30, the IMX price reached $0.67. Based on the token’s 30% uptrend in the previous ten days, IMX is unlikely to decline by more than 3-4% by Nov. 6 if the overall market sentiment stays bullish. The short-term target stands at a previous support/resistance at $0.63.
#2 Galxe Will Unlock 7.6M GAL Tokens on Nov. 5
Galxe token GAL price stood at $1.37 on Oct. 30, after rising 25% in the previous ten days. However, the 7.6 million tokens unlock on Nov. 5 could reverse the uptrend.
Let’s take a look at the statistics of previous unlocks. Galxe went through 26 different-sized tokens unlocks this year alone, and the previous six of them, much like IMX, had an erratic effect on the GAL price.
The GAL price dropped -7.6% to +17% two days after each token unlock event.
The upcoming unlock will take the circulating supply from 49% to 53.6%. However, considering the size of the upcoming unlock ($10 million worth of GAL), a short-term decline to a previous resistance/support at $1.28 could be in the books.
#3 Will dYdX Token Drop?
Crypto exchange dYdX’s token traded at $2.5 on Oct 30, 1 day before the upcoming unlock of 2.16 million tokens worth approximately $5.3 million. Like other entries on the list, dYdX held Trading Reward and Community Treasury unlocks of equal amounts (mainly 7.2 million DYDX) monthly since August 2021.
Still, their short-term influence on the price could also be construed as irregular, ranging from -10% to +10% in the following two days. Notably, the upcoming unlock on Nov. 5 will also “unleash” 7.2 million tokens.
However, the following one, on Dec. 3, will unlock 150 million coins, or 15% of the total supply, allocating DYDX coins to founders, investors, and employees. Considering the size of the unlock, it could potentially influence the market more heavily.
#4 SUI Network Community Reserves to get 4M tokens
Sui Network’s 4 million coin unlock is 11 hours away on Oct. 30, 13:00 GMT. The platform has been delivering monthly unlocks of 70 million tokens to community reserves and stake subsidies since May 2023.
SUI is the only entry on the list that has consistently suffered losses in the days following the unlocks, ranging from 2 -23%. Many factors affect a token’s price action at a given time. However, the consistent declines could indicate an upcoming price correction for SUI after a 25% uptrend in the previous ten days.
#5 Acala will release 27.4M ACA tokens
On Nov. 1, Acala, the “DeFi hub for Polkadot,” will unlock approximately 27.4 million tokens worth $1.44 million at the current price of $0.05.
According to the platform’s vesting schedule, Acala has already allocated $5.3 million in ACA to Crowdloan participants, $7.1 million to strategic partners, and $5.1 million to the Acala team since Feb 2023.
Meanwhile, the ACA price has fallen since the coin’s initial release and traded 98% below its all-time high of $2 in January 2022.
