While the cryptocurrency market navigates through fluctuations triggered by macroeconomic factors and adjustments within the sector, a noteworthy event is emerging that has largely gone unnoticed: numerous altcoins are poised to release the majority of their tokens by the conclusion of 2025. This crucial narrative has not received the attention it warrants. Historically, the unlocking of tokens has been linked to price volatility as the previously locked supply gradually enters circulation. Conversely, the near-total unlocking of specific tokens removes this ongoing overhang, which could significantly alter market dynamics. The implications are substantial, as Fully Diluted Valuations (FDVs) often overshadow market capitalizations, complicating the understanding of authentic supply-demand relationships. With just a few months remaining until full circulation for many prominent altcoins, traders and investors might be missing a critical turning point. These projects will soon eliminate supply-side uncertainties, likely resulting in clearer pricing and more visible organic demand.
### Key Altcoins Approaching Unlock Milestones
Several altcoins have already released over 95% of their total token supply, with the remaining tokens scheduled to unlock well ahead of 2025. Among these, Biconomy ($BICO) stands out as a protocol designed to streamline interactions within the Web3 space. It is nearing the end of its token distribution phase, with merely 4% of its total supply still locked, specifically allocated for community purposes, indicating a relatively low-risk scenario. Dodo (DODO), a decentralized exchange that employs Proactive Market Making (PMM), has just 5% of its supply left to unlock. Its community-focused allocation is expected to mitigate the impact of this unlocking event.
Further, Gelato ($GEL), which serves as a Web3 automation layer, has only 3% of its tokens yet to be unlocked. While the distribution to the team and foundation could introduce some risk, the relatively modest FDV helps limit potential downsides. Cartesi ($CTSI), which facilitates the scaling of smart contracts on Linux, also has 3% remaining to unlock, with these tokens intended for reserves, suggesting minimal immediate risk. VVS Finance ($VVS) represents one of the higher FDV projects on this list; however, its team allocation should be monitored, as team unlocks can exert selling pressure. Nonetheless, a significant portion of its supply is already circulating, which alleviates some concerns.
Coin98 ($C98) has 5% of its tokens pending release, which are distributed among community, treasury, and team allocations. The actual impact will hinge on how these groups manage their tokens, but with only 5% left to unlock, the most challenging phase appears to be behind. On the other hand, 1inch (1INCH) remains the furthest from full circulation, with 8% of its supply still locked and intended for insiders. This scenario could incite greater volatility, particularly given its larger FDV and allocation to investors. However, the timeline for unlocking is relatively short, suggesting that potential negative impacts may already be accounted for in the market.
### The Opportunity Amid Market Noise
Despite the prevailing focus on macroeconomic narratives and the excitement surrounding meme coins, the upcoming complete unlocks of select digital assets represent a potential opportunity for discerning investors. Unlike traditional initial coin offerings (ICOs), which release tokens in phases, projects that achieve full circulation and maintain low FDVs could regain favor among investors once defined unlock periods conclude. The challenge lies in the fact that allocators rarely discuss these opportunities until the market becomes aware of the unlocks, raising the question: Is the market truly cognizant of its potential?
At this moment, the clock is ticking, and the chance to capitalize on the realization of supply may soon be slipping away. This situation highlights the necessity of being well-informed about token unlocks and their possible implications for the market. As more altcoins inch closer to full circulation, both investors and traders should brace for potential changes in supply-demand dynamics and pricing structures.
