• Mon. May 20th, 2024

Avoid Trading These Three Cryptocurrencies During the First Week of May

Phillip Bryant

ByPhillip Bryant

Apr 27, 2024
Avoid Trading These Three Cryptocurrencies During the First Week of May

The market will encounter three cryptocurrencies during the first week of May that should be avoided for trading purposes due to significant token unlockings. These cryptocurrencies are Bitcoin, ethereum, and others cryptocurrencies.

In the process of releasing cryptocurrency assets, selling pressures are frequently generated, which can have a significant impact on the price of the cryptocurrency as well as the outcomes of investments. When it comes to making profitable decisions and mitigating risks, astute traders and investors carefully examine the equilibrium between supply and demand.

TokenUnlocksApp has provided information that indicates that there is a significant amount of potential sell-offs that are anticipated to take place in the upcoming week beginning on April 27. These potential sell-offs are expected to amount to $417.68 million. The release of tokens with a staggering value of $271.26 million is going to take place as a result of a series of unlocks that have been highly anticipated and will take place between April 29 and May 3.

Memecoin (MEME)

First and foremost, Memecoin (MEME) garners attention due to its remarkable market capitalization of $144.64 million, which is equivalent to 5.318 billion MEME tokens. On May 3, the team intends to release these tokens, which will result in a 32% increase in the supply currently in circulation and potentially cause a decline in the market.

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An airdrop will be used to distribute a staggering 3.45 billion MEME, which will then be ready to be sold for an astounding $93.92 million. According to the CoinMarketCap index, this figure is more than twice as high as the 24-hour trading volume of $40 million that Memecoin experienced.

dYdX Protocol (DYDX)

The DYDX decentralized exchange protocol has once again made headlines as one of the cryptocurrencies that traders should avoid. This is primarily due to the fact that it has unlocking mechanisms that other cryptocurrencies cannot use. Finbold issued a similar warning for March 31 and, prior to that, for February 29, with the release of 33.34 million tokens, each of which had a value of $117.33 million and $130 million, respectively.

On May 1, a quantity of DYDX equivalent to the current value of the protocol, which is $70.33 million, will be released into circulation. The value of previous unlocks has decreased, and they are now worth almost half of what they were in February. This should be brought to your attention.

Regarding the distribution, the early investors will receive the vast majority of the unlocks, which are currently valued at $39.01 million. This is the allocation scheme. The group is anticipated to sell DYDX worth a total of $21.48 million in the coming weeks, while the remaining portion, which is estimated to be worth $9.85 million, will be set aside as a reserve for potential future employees.

Optimism (OP)

Optimism (OP) has finally announced that it will be the third-largest token unlock during the first week of May. Although the rate of inflation is relatively lower than in the two instances before it, traders should refrain from trading OP in the days immediately ahead.

The layer-2 blockchain, which will be used for the Ethereum (ETH) ecosystem, will make access to 24.16 million OP, which is currently valued at $56.29 million, possible. On April 29, the core contributors will receive 12.75 million tokens, while investors will receive 11.41 million tokens. Both of these amounts are expected to be distributed.

A decrease in the price of a token does not necessarily follow from an increase in the supply of that token. This is because the interaction between supply and demand acts as a stabilizing factor in situations like these.

However, cryptocurrency traders will make an effort to investigate the economic repercussions that these will have on the price of the cryptocurrency, which may result in increased volatility and a risk-reward ratio that is less likely to be favorable.

Because of the market’s volatility and the fact that it is affected by a number of different factors, effective risk management and awareness of the right times to refrain from trading particular cryptocurrencies are necessary.

Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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