news 
$13 Billion in Token Unlocks Incoming: Volatility Ahead for Crypto Markets
The crypto market is bracing itself for a tumultuous period as a staggering $13 billion worth of tokens are set to be unlocked over the next six months. This unprecedented influx of new assets will undoubtedly have far-reaching consequences, with some market players warning of potential volatility and even correction.
It appears that certain sectors will be more heavily impacted than others. In October, the artificial intelligence (AI) sector is expected to release a massive $3.4 billion worth of tokens, potentially causing significant price movements within this space. This concentration of unlocks could have far-reaching consequences for the entire AI ecosystem, as well as the broader market.
Meanwhile, July will see an unprecedented event as meme coins unleash $2.03 billion worth of tokens in a single month, with one particular token dominating the narrative. It’s imperative to note that Layer 2s are set to heat up mid-year with $1.3 billion in emissions, which could also contribute to heightened market volatility.
While some may see this influx as an opportunity to make profits, it is crucial to remember that these unlocks will not occur evenly across all sectors or tokens. The uneven release schedule threatens to create upward volatility for the unlocked tokens and potentially even affect their respective sectors.
As a result, institutional investors and protocols staked on layer 1 and layer 2 protocols may find themselves particularly vulnerable to tokenomics-induced downside pressures.
Source: nulltx.com
