Altcoin
Optimism, Sui, Ethena Braces For Massive Liquidation, Here’s Why
The cryptocurrencies Optimism (OP), Sui (SUI), and Ethena (ENA) are among the coins set to witness massive liquidations in the coming days. This is primarily attributable to enormous token unlocks looming over the crypto horizon.
Approximately $118 million worth of coins will be collectively unlocked shortly ahead, encompassing OP, SUI, and ENA tokens. These cliff unlocks are expected to trigger massive liquidations as prices face significant risk.
Notably, token unlocks refer to the phenomenon wherein previously locked tokens are released into the market. The release, in turn, brings fresh inflow to the coin’s market supply, negatively impacting tokenomics.
So, let’s look into the upcoming token unlocks for OP, SUI, and ENA tokens.
Optimism (OP)
Boasting a market cap of $2.04 billion, the Optimism crypto, an L2 on Ethereum, is poised to witness an unlock of 31.34 million OP on June 30. This totals 2.88% of the coin’s circulating supply, worth $56.73 million.
Data from the Token Unlocks App suggests that 26% of the locked amount has been unlocked to date. This is equivalent to 1.13 billion OP.
Meanwhile, the OP price showed a 0.58% jump in value to trade at $1.83 today. The substantial increase in supply in the coming days is expected to cause a bearish turn in price.
Sui (SUI)
Simultaneously, the Sui crypto is set to witness a token unlock of a whopping 69.30 million coins on July 1. This is equivalent to 2.88% of Sui’s market supply, worth $57.37 million.
On-chain data indicated that 24% of locked Sui has been unlocked to date. This totals a staggering 2.43 billion SUI.
The Sui network flaunts a market cap of $1.99 billion, whereas the crypto traded at $0.8216, showing signs of a pullback over the past day. It’s worth noting that the price could plunge further ahead, given the looming massive unlock.
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Ethena (ENA)
Similarly, ENA prepares to take the heat of an unlock of 14.89 million coins on June 30. This equals 0.92% of the crypto’s circulating supply, worth $8.10 million.
Intriguingly, only 8% of the locked tokens have been unlocked to date, worth 1.25 billion ENA.
Meanwhile, the ENA price saw a 6.26% dip over the past day to trade at $0.5465. Ethena boasted a market cap of $830.54 million and similar to the abovementioned tokens, the ENA price also risks a fall ahead, paving the way for liquidations.
Additionally, it’s worth mentioning that token unlocks equivalent to or more than 1% of the circulating supply have a severe negative impact on tokens’ prices. Crypto market participants continue to monitor these coins extensively for price action shifts.
Some other coins that are set to witness this setback in the coming days are Galxe, ZetaChain, and Manta Network, among many others. Galxe (GAL) will witness an unlock equal to 2.6% of its circulating supply, whereas ZetaChain (ZETA) and MANTA will experience 1.9% & 0.6% worth of unlocks, respectively.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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