The cryptosphere is in a whirl this week, with major coins witnessing a drop in their token prices. The two coins that have caught everyone’s eye are SUI and HBAR, both are bracing themselves for an increase in their circulating supply.
The prime reason behind this shift is the token unlock event scheduled for both the projects. Typically, token unlocks are designed to alleviate selling pressure on tokens by allowing early investors and project team members to finally unload their holdings onto the market. According to the data available from CoinDesk Indices, SUI is currently down by 7% and trading for $0.54, while HBAR is trailing by 4% at $0.05.
Whilst these tokens are experiencing a fall, other cryptocurrencies like ETH are faring far better with a slight dip of 0.3%. Unequivocally, every coin has its share of highs and lows, and experiencing volatility is practically indistinguishable from playing the crypto game.
Engaging data from TokenUnlocks reveals that SUI plans on enlarging its allocation of tokens designated for staking subsidies from 967,740 to 1 million SUI, with a value estimating about $540,000. Contrarily, Hedera is planning for a larger allocation of 1.15 billion HBAR, split between network governance, purchase agreements, and ecosystem development. This allocation amounts approximately to $64.3 million.
Earlier this month, HBAR rode high on a wave of a 15% surge. The coin was integrated into the U.S. Federal Reserve’s FedNow platform, exerting a 50% price impetus since mid-June and skyrocketed its market cap above the $2 billion mark. While the immediate euphoria has subsided, the token is now facing a price reduction that’s slated to fluctuate with the increase in allocation.
So what’s the takeaway from this scenario? With the impending token unlocks, the market is bracing for a potentially volatile period. While increase in token circulation ordinarily equates to dilution of values, unlocking such locked tokens can induce a substantial supply shock. So, investors and users of SUI and HBAR should not be perturbed by these short-term fluctuations. As we have seen in the past, smart strategizing can turn such events into viable opportunities. Keep your eyes peeled on these market shifts and prepare for the exciting ride ahead. One cannot deny that despite these anticipated shivers in the market, the future of cryptocurrencies remains tantalizingly rich with potential.
Source: Coindesk
