Key cryptocurrencies like AltLayer, ENS, and Aptos to release significant token amounts, potentially impacting market dynamics.
In July, the cryptocurrency market is set to experience a significant event with the release of approximately $3 billion worth of tokens into circulation. This process, known as token unlocks, involves various cryptocurrencies and could potentially impact the broader market capitalization. Token unlocks increase the total supply of tokens, which might influence their prices and market dynamics. Among the to-be-unlocked tokens there is Aptos, AltLayer, Ethereum Name Service, and others.
The market's ability to absorb these new tokens and the overall sentiment at the time of the unlock will play crucial roles in determining the impact on token prices. Investors and market participants will be closely watching these events to gauge their effects on the cryptocurrency market.
Amid the upcoming token unlocks, the Ethereum Name Service (ENS) coin has been making headlines with its impressive market performance. Recently, ENS registered a gain of over 24% in just 24 hours, with a peak rise above 30%. This surge has pushed its market capitalization beyond the $1 billion mark for the first time in a while and increased its trading volume by over 80% to more than $293 million.
The Relative Strength Index (RSI), a key indicator of market momentum, suggests a strong bull trend for ENS, nearing 70. This indicates strong buying momentum. Additionally, open interest in ENS derivatives has reached new highs, nearing $160 million, and the funding rate has turned positive, signaling increased demand for long positions and optimism for further price increases.
