Major token releases set for Cardano, Solana, NEON

The Key Points at a Glance

• Significant token releases for Cardano (ADA), Solana (SOL), and Worldcoin (WLD) are scheduled for November 2024.
• Cardano leads the list with a release of 37.06 million ADA tokens, representing approximately 0.10% of the circulating supply.
• Solana and Worldcoin are utilizing linear releases, spread out over a longer period.
• The impact on cryptocurrency prices will depend heavily on market demand.

What Are Token Unlocks?

Token unlocks refer to the release of previously locked cryptocurrencies. These locks are often part of investor agreements or project development plans. Once tokens are unlocked, they can be traded on the market, potentially leading to price fluctuations.

Cardano (ADA) – Largest Release in November

Cardano will release 37.06 million tokens in November, equivalent to approximately 12.44 million USD. Although this represents only 0.10% of ADA’s circulating supply, the increased liquidity could cause short-term price fluctuations. If demand doesn’t keep up with supply, selling pressure could arise, slightly affecting the price.

NEON – A Significant Portion of the Circulating Supply Will Be Released

Another major event is the release of 53.91 million NEON tokens, representing 44.92% of the circulating supply. This large release could lead to significant volatility as almost half of the available tokens enter the market. Investors should be prepared for potential price fluctuations.

Solana (SOL) and Worldcoin (WLD) – Linear Releases

Unlike Cardano and NEON, Solana and Worldcoin are opting for linear releases. Solana will release 524,030 tokens, valued at 85.86 million USD. This release represents about 0.11% of the circulating supply and is unlikely to cause dramatic price fluctuations. However, the continuous release over time could lead to smaller price movements.

Worldcoin will release 6.16% of its circulating supply, valued at 65.15 million USD. This release could result in selling pressure if demand isn’t strong enough to absorb the additional supply. Dogecoin (DOGE) will also experience a smaller linear release valued at 14.48 million USD, which is expected to have minimal impact on the price.

Market Impact – What to Expect?

Although the combined releases in November won’t reach the 1 billion USD level seen in October, they could still influence market prices. Tokens like NEON and Worldcoin, which are releasing a significant portion of their circulating supply, could experience price fluctuations due to selling pressure.

Tokens with smaller releases, such as Cardano and Solana, are likely to be less affected, as the additional supply will probably be more easily absorbed. However, the actual impact will depend heavily on overall market demand and investor behaviour.

Our Assessment

The token releases in November present an interesting opportunity to observe the dynamics of the crypto market. While larger releases like those of NEON and Worldcoin could potentially lead to volatility, smaller releases like those of Cardano and Solana are likely to have less impact. Investors should closely monitor market developments to identify potential opportunities or risks early on.