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.
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- Source: https://www.coindesk.com/markets/2023/11/27/altcoin-rally-cools-as-massive-650m-worth-of-token-unlocks-loom-over-crypto-market/?utm_medium=referral&utm_source=rss&utm_campaign=headlines
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