Altcoin Market Could Heat Up This Week With $3B Token Unlock Schedule, ONDO Leads the Charge

Altcoin Market Could Heat Up This Week With $3B Token Unlock Schedule, ONDO Leads the Charge

Ondo Finance to Unlock $3 Billion Worth of Tokens, Causing Potential Market Volatility

Ondo Finance is set to release a massive amount of ONDO tokens on January 18, triggering potential volatility in the altcoin market. The total token unlock schedule for this week is valued at $3 billion, marking the highest release since November.

The primary contributor to this unlock is Ondo Finance's ONDO token, with 1.94 billion tokens—worth approximately $2.23 billion—set to be freed. This unlock represents over 130% of ONDO's circulating supply, which currently stands at around 1.4 billion. The amount being released is several times higher than the token's daily trading volume, which has fluctuated between $250 million and $300 million in recent days.

Token unlocks involve the gradual release of previously frozen tokens, typically held back to prevent early investors and project team members from dumping large quantities at once. This process is designed to avoid market instability and sharp price fluctuations. However, when unlocks exceed the typical size of the circulating supply or average daily trading volume—like with ONDO—market volatility can increase.

According to research from The Tie, token unlocks representing 100% of the average daily volume often lead to significant price swings, both leading up to and after the unlock event.

At the time of writing, ONDO was trading at $1.14, the lowest price since December 2. This marks a 5% drop for the day and a nearly 15?cline month-to-date. The token has seen a significant decline from its all-time highs above $2.10, recorded on December 16, according to TradingView data.

With billions of dollars' worth of tokens being unlocked this week, the altcoin market could experience heightened volatility in the days to come.

Ondo Finance to Unlock $3 Billion Worth of Tokens, Causing Potential Market Volatility

By Omkar Godbole | Edited by Parikshit Mishra
Updated Jan 13, 2025, 7:08 a.m. UTC | Published Jan 13, 2025, 7:02 a.m. UTC

Ondo Finance is set to release a massive amount of ONDO tokens on January 18, triggering potential volatility in the altcoin market. The total token unlock schedule for this week is valued at $3 billion, marking the highest release since November. This unlock includes tokens from various projects such as ONDO, ARB, STRK, SEI, and others, adding to the overall market supply and potentially increasing price fluctuations.

The primary contributor to this unlock is Ondo Finance's ONDO token, with 1.94 billion tokens—worth approximately $2.23 billion—set to be freed. This release will account for over 130% of ONDO’s current circulating supply, which stands at around 1.4 billion. This makes it one of the largest single-token unlocks in recent memory, far exceeding ONDO's daily trading volume, which has been in the range of $250 million to $300 million in recent weeks.

Such a large influx of tokens can disrupt market stability, as it could lead to sudden price movements, especially if a large portion of these unlocked tokens is sold on the market. Typically, token unlocks are staggered over time to avoid large price swings, as they release previously frozen tokens held by early investors, developers, or project teams. The gradual release aims to prevent market instability that could occur if these parties liquidated their holdings all at once.

However, when the unlock exceeds typical volumes—such as the ONDO release—it can amplify market volatility. Research from The Tie indicates that tokens facing unlocks equivalent to 100% of the average daily volume often experience sharp price fluctuations both before and after the event. Given the size of the ONDO unlock, investors and traders are bracing for potential price swings in the coming days.

At the time of writing, ONDO was trading at $1.14, the lowest price since December 2, reflecting a 5% drop for the day and a nearly 15?cline month-to-date. The token’s price has been in freefall since reaching an all-time high of over $2.10 on December 16, a drop that has contributed to growing concerns about its near-term outlook. The recent decline suggests that market participants may already be factoring in the upcoming unlock event, with many likely waiting to see how the market responds once the release occurs.

The broader market could also feel the ripple effects of this massive token unlock. As Ondo Finance continues to build its position as a decentralized tokenization platform with a significant Bitcoin treasury strategy, the market may need to absorb large quantities of ONDO, ARB, and other tokens into the broader altcoin ecosystem. This could contribute to additional volatility in the altcoin market, particularly as the total value of unlocks across various projects hits a staggering $3 billion.

In addition to the immediate price action, the unlock schedule for January 13–19, as outlined by Tokenomist, could set the stage for further market movements. Token holders and traders will be watching closely to see if the influx of unlocked tokens leads to significant price instability or if the gradual release of assets allows for smoother market conditions.

For now, the focus remains on how ONDO’s unlock will impact its value, especially as the project continues to gain attention in the cryptocurrency ecosystem. With the total value of unlocks expected to exceed $3 billion this week, both traders and long-term investors in the altcoin market are preparing for a potentially volatile period.