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Token unlocks in altcoins can cause big price changes, especially if demand doesn’t increase. Some big unlocks are expected soon, which might shake up the market.Cryptos Headlines Token Airdrop Is Live, Claim 5000 CHT Token Free On <a href="https://cryptosheadlinestoken.com/index.php/tokenomics/" rel="noopener noreferrer nofollow">CryptosHeadlinesToken.com</a><img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/02/Cryptos-Headlines-Token-Airdrop-Is-Live-Claim-Your-Reward-Now-1.png?fit&#61;900%2C200&amp;ssl&#61;1" />Token unlock events often cause altcoin prices to swing wildly and can impact their performance over time. If steps aren’t taken to <a href="https://cryptosheadlines.com/elon-musks-ai-chatbot-grok-boosts-token-1000/" rel="noopener noreferrer nofollow">boost demand for the newly available tokens</a>, it can significantly harm their price. In the hours and days ahead, we’re expecting several important token unlocks, which could have a notable effect on the market.<h3 id="challenges-of-returning-to-all-time-high-ath-levels-for-altcoins">Challenges of Returning to All-Time High (ATH) Levels for Altcoins</h3>When most <a href="https://cryptosheadlines.com/binance-altcoin-market-sees-strong-growth/" rel="noopener noreferrer nofollow">altcoins enter the market</a>, they often have a limited circulating supply. Despite potential <a href="https://cryptosheadlines.com/market-value-of-bitcoin-request-for-comment-tokens-soars-to-137m/" rel="noopener noreferrer nofollow">market value</a> increases, many struggle to return to their all-time high (ATH) levels from their initial periods. Take DYDX, for instance, which debuted in 2021 with only 80 million circulating tokens and reached a formidable price of around $27. However, as the token supply rapidly expanded, the likelihood of sustaining double-digit prices significantly diminished.XRP Coin serves as a prime example of this trend. Even if the market value of the <a href="https://cryptosheadlines.com/bitcoin-and-ether-continue-downward-slide-for-fourth-day-altcoin-trading-volume-surges/" rel="noopener noreferrer nofollow">altcoin were to return to its ATH days</a>, the unit price would only reach a modest $1.3.<h3 id="impacts-of-token-unlock-events-on-cryptocurrency-prices">Impacts of Token Unlock Events on Cryptocurrency Prices</h3><a href="https://cryptosheadlines.com/27-altcoins-set-for-token-unlock-events-in-the-coming-week-see-the-list/" rel="noopener noreferrer nofollow">Token unlock events</a> often have significant repercussions on cryptocurrency prices, particularly when large portions of the total token supply are released into the market. For example, at around 14:00 TSI, Aptos <a href="https://cryptosheadlines.com/ryoshi-plans-to-introduce-governance-token-with-200-million-in-total-supply/" rel="noopener noreferrer nofollow">plans to release 7.32% of its total token supply</a>, valued at approximately $224.82 million at current prices. This substantial increase in circulating supply could exert downward pressure on the token’s price unless offset by strong demand.<a href="https://cryptosheadlines.com/cardano-price-stuck-at-0-48-but-charts-suggest-possible-rise/" rel="noopener noreferrer nofollow">Also Read: Cardano Price Stuck at $0.48; But Charts Suggest Possible Rise</a>Similarly, the SAND Token team is set to unlock 9.19% of its supply, worth over $96 million, on February 14th. If this release occurs without any unforeseen positive developments, it could lead to a <a href="https://cryptosheadlines.com/chainlink-experiences-notable-price-surge-and-token-activity/" rel="noopener noreferrer nofollow">notable price</a> decrease. Another noteworthy event is the unlock of 2.6% of ApeCoin’s <a href="https://cryptosheadlines.com/trb-surges-as-50-of-total-supply-gets-withdrawn/" rel="noopener noreferrer nofollow">total supply</a>, valued at $21.84 million, on February 16th.Cryptos Headlines Token Airdrop Is Live, Claim 5000 CHT Token Free On <a href="https://cryptosheadlinestoken.com/index.php/tokenomics/" rel="noopener noreferrer nofollow">CryptosHeadlinesToken.com</a><img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/02/Blue-Modern-Profile-Twitter-Header.png?fit&#61;1500%2C500&amp;ssl&#61;1" />One of the largest unlocks in February will come from the AVAX team, with supply worth $363.5 <a href="https://cryptosheadlines.com/nike-nfts-set-to-enter-ea-sports-games-delighting-millions-of-fans/" rel="noopener noreferrer nofollow">million set to enter</a> circulation on February 21st. Such events contribute to token inflation and may result in unfavorable outcomes for investors in the short term.However, the <a href="https://cryptosheadlines.com/potential-impact-chinese-coins-as-key-players-in-the-crypto-market/" rel="noopener noreferrer nofollow">impact of these unlocks can potentially</a> be mitigated or even reversed by factors such as delays in the event, announcements of new projects, or strategic partnerships. These actions could counteract the downward pressure on prices and even drive prices in the opposite direction of initial expectations.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

How Token Unlock Events Affect Altcoin Prices

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