Crypto Analytics Firm IntoTheBlock Warns That Large Token Unlocks May Hamper the Performance of Several Altcoins

IntoTheBlock notes that nearly $25 million worth of Bitcoin (BTC) is “unlocked” or mined each day – an amount that is easily absorbed by the crypto

Crypto analytics firm IntoTheBlock is flagging several altcoins that may face challenges due to large token unlocks in the coming days.

According to IntoTheBlock, a substantial amount of Bitcoin (BTC) is mined and “unlocked” each day, reaching nearly $25 million. However, this figure has a minimal impact on BTC's performance thanks to its vast and liquid market.

On the other hand, certain projects, such as Sam Altman’s “proof-of-person” project Worldcoin (WLD), decentralized finance (DeFi) platform Stargate Finance (STG) and layer-2 blockchain Mantle (MNT), have daily token unlocks that constitute a relatively high percentage of their market capitalization, the firm’s data shows.

IntoTheBlock suggests that the price performance of WLD, STG and MNT may be affected by the significant amount of fresh tokens being released each day.

“This chart shows daily linear unlocks for top assets

$24.9M worth of BTC is unlocked daily, though it has minimal market cap impact.

Stargate, Worldcoin, and Mantle have significant unlocks relative to market cap, posing potential market cap dilution risks.”

Another chart shared by the firm highlights upcoming token unlocks, including a massive unlock for cross-chain interoperability protocol Wormhole (W) (33% of total market cap).

“The following chart shows upcoming token unlocks and what part of the supply will be unlocked.”

On a more positive note, IntoTheBlock points out that the net flows of oracle service Chainlink (LINK) to crypto exchanges have been negative for the past two weeks. Flows out of crypto exchanges are usually interpreted as bullish, indicating less available supply to create sell pressure.

“Exchange netflows for LINK have been negative for the past two weeks, with roughly $110 million worth of LINK being withdrawn from exchanges during this period.

Such activity is typically associated with an accumulation phase, indicating that investors are moving LINK off exchanges and into long-term holdings.”

At press time, LINK is trading at $13.77, up over 5% on the day.

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