Bloomberg noted that while “unlocking for sale” may be a factor in exacerbating the decline, the prices of tokens such as DYDX and Avalanche (AVAX) have been halved, while PYTH has dropped by 70%. TokenUnlocks shows that all three tokens were unlocked in May, indicating that unlocking for sale may be the main cause of the decline.
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“Competitive Coin” Winter Comes Early
Retail Investors Sell Before Venture Capital Unlock
Only 12 Projects have Risen Since March
CoinMarketCap
(CMC) data shows that since Bitcoin reached its peak in March, the market value of competitive coins excluding Ethereum and stablecoins has plummeted by 30%, while Bitcoin’s market share remains above 53%.
In addition, many projects’ tokens are undergoing “unlocking” this year. TokenUnlocks data shows that out of 138 tokens it tracks, 120 will be unlocked this year, with a total market value of about $58 billion.
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Trend of Competitive Coin Market Value
Edward Chin, co-founder of Parataxis Capital, said:
Given that these unlocking schedules are public and known, when “non-venture holders” try to sell before the venture capital unlocks, the price decline may be exacerbated. You can also see these effects fermenting downstream in the OTC market, as brokers are often required to provide locked tokens to early investors or employees at a discount of more than 60% off the spot price.
Bloomberg pointed out that while unlocking for sale may be a potential cause of the decline, according to CMC data, the prices of DYDX and Avalanche (AVAX) have been halved, and PYTH has dropped by 70%. TokenUnlocks shows that all three tokens were unlocked in May, indicating that unlocking for sale may be the main cause of the decline.
Only 12 Projects have Risen Since March
Tanawat Chiewhawan, CEO of TokenUnlocks, explained the “unlocking for sale”:
Token unlocking actually drove prices up last year, but venture capitalists and retail investors have also started paying more attention to token unlocks and circulating supply data, leading market participants to be more inclined to short-term gains rather than holding unlocked tokens for long-term returns.
Bloomberg finally quoted CCData data, mentioning that out of about 90 mainstream non-stablecoin assets tracked on CEX, since Bitcoin set a new all-time high on March 14th, only 12 projects have risen, while 81 have fallen: of the top 100 market cap tokens, 61 have fallen by more than 25%, and 23 have fallen by more than 50%.
AVAX
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CoinMarketCap
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